Description
S corporations are subject to stringent rules with limitations on who or what can be a shareholder of an S corporation. For estate planning purposes, trusts and estates counsel must recognize the impact of eligibility rules for S corps, key tax provisions, and reporting and administrative challenges to implement methods to minimize tax liability.
Succession, shareholder agreements, valuation, post-mortem planning, and basis considerations are some of the challenges of developing an estate plan for owners of S corporations. Under current tax law, there are significant opportunities, along with some additional complexity, for estate planners and advisers. Clients with ownership interests in an S corporation are less focused on reducing estate taxes and more focused on avoiding probate and reducing future capital gains tax through obtaining a basis step-up.
Estate planning counsel must be adept at applying key tax provisions to current and future estate plans involving S corporations. For existing ESBTs, trusts and estates counsel should determine whether the trust document allows for realignment of beneficiaries to enable use of a QSST or, in the absence of this power, whether a modification of the original trust is appropriate.
Listen as our panel provides a practical guide to the challenges and opportunities of S corporation ownership interests for trusts and estates. The panel will also offer techniques for the use of multiple grantor trusts, S corp trusts, and other items to minimize taxes.
Presented By
Mr. Barnett’s practice is highly concentrated in the areas of taxation, trusts, estates, corporate and partnership law and charitable planning. His experience includes surrogate’s court practice, tax dispute resolution in both federal and state jurisdictions, and tax court representation. Mr. Barnett frequently assists clients in structuring financial transactions and charitable gifts. His articles and lectures encompass a wide variety of topics, including business succession, estate planning, generation-skipping, stock options, effective strategies for removing tax liens, proper utilization of the marital deduction and utilization of partnership elections.
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high-net-worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely held businesses in the areas of income tax planning and compliance, estate planning and administration services, as well as family structure consulting. Through many years in practice, he synthesized the work of various related professionals, and their firms integrate several planning strategies into solutions that maximize value. Mr. Lipoff is a frequent lecturer and author of articles published through professional forums on topics including domestic and international - estate planning and fiduciary income taxation including constructive attribution rules for foreign trusts, Forms 3520 & 3520-A, Graegin Loans, business succession, generation-skipping transfers, Chapter 14 and carried interest estate planning for private investment fund principals, preferred freeze partnerships, and private placement life insurance.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 90-minute webinar is accredited for 1.5 CPE credits.
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Date + Time
- event
Tuesday, February 17, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Qualified shareholders and eligibility rules for S corps
II. Challenges of S corp ownership interests in estate planning
III. Evaluating current S corporation trust structures to see if they still achieve optimal tax benefits
IV. Qualified S trusts and election
V. Electing small business trusts and election
VI. QTIP trusts holding S corp shares
VII. Fiduciary accounting income and conflicts
VIII. Transfers of S corp interests
IX. Navigating reporting and administrative issues
X. 6166 and estate tax payment
The panel will review these and other key issues:
- Critical guidance on qualified shareholders of S corporations for trusts and estates counsel
- Principal challenges of S corp ownership interests in estate planning and methods to overcome them
- Identifying issues in current S corporation trust structures and making modifications for optimal tax benefits
- Current differences in tax treatment between an ESBT and a QSST holding S corporation stock
- Essential considerations for transfers of S corporation interests
Learning Objectives
After completing this course, you will be able to:
- Recognize various types of trusts eligible to be S corp shareholders
- Verify that QSSTs and ESBTs are properly and timely filed
- Distinguish between QSSTs and ESBTs
- Understand how to overcome complex tax planning challenges with the use of S corporations within the estate plan
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
Related Courses
Estate Planning With S Corporations: Legal and Tax Considerations for Counsel
Tuesday, February 17, 2026
1:00 p.m. ET./10:00 a.m. PT
