• videocam Live Webinar with Live Q&A
  • calendar_month November 17, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Estate Planning
  • schedule 90 minutes

Grantor Trusts After Divorce: Fiduciary Challenges and Minimizing Tax for Trust Transfers to Former Spouse

Gift Tax Exemption on Divorce Transfers, Grantor Trust Rules, Gift-Splitting and Income Tax Rules

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Discount expires 11/3/26

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CLE
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About the Course

Introduction

This CLE/CPE course will provide estate planners and fiduciary advisers with a practical guide to administering a grantor trust after the grantor's divorce under current tax law. The panel will describe adverse income tax consequences due to inadequate drafting of the trust, detail corrections and critical terms to include in grantor trusts to avoid triggering recognition, and address post-divorce steps for fiduciaries to minimize the tax impact of divorce on a grantor trust.

Description

Post-divorce administration of grantor trusts can present fiduciaries with significant challenges. While the IRC generally treats distribution of assets in a marital dissolution as a non-taxable event, the presence of a grantor trust can bring unanticipated income and gift tax consequences when assets are transferred to the non-grantor former spouse.

Section 2516 exempts certain payments and transfers between former spouses that would otherwise be taxable, but only when those payments are made pursuant to a written agreement to resolve divorcing spouses' joint property rights or provide for child support. Transfers outside the scope of joint property rights or support of minor children are deemed taxable.

Estate and fiduciary advisers must also navigate the impact of "kick-out" provisions in estate and trust documents. While these provisions serve to protect the grantor's interest, they can create situations in which distributions from the trust outside the scope of Section 2516 to the former spouse are treated as taxable transfers. Estate planners and fiduciary advisers must ensure these rules work to avoid adverse tax consequences.

Listen as our panel of estate planning counsel details the specific challenges of administering grantor trust transfers to former spouses arising from divorce under current tax law.

Presented By

Andrew C. Dagen
Attorney
Blank Rome LLP

Mr. Dagen is a trust and estates attorney with a background in domestic and international estate planning, tax strategy, and wealth preservation. He advises high-net-worth individuals, families, entrepreneurs, founders, executives, beneficiaries, and fiduciaries on estate, charitable, and business succession planning tailored to meet personal and financial goals in a tax-efficient manner. Mr. Dagen has extensive experience structuring and administering complex estate plans, trust, and business entities. He regularly develops bespoke tax strategies for clients in the private equity, hedge fund, and pension sectors, and collaborates with cross-border teams to optimize global tax outcomes. Mr. Dagen's practice also includes resolving disputes, negotiating family settlements, and drafting entity agreements that support long-term wealth protection.

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Steffi Hafen
Partner
Snell & Wilmer L.L.P.

Ms. Hafen is a certified specialist in estate planning, trust, and probate law by the California Board of Legal Specialization. She is a co-leader of the firm’s Private Client Services Practice Group and a partner in the General Federal Tax Practice Group. Ms. Hafen previously served as the managing partner of Snell & Wilmer’s San Diego office and works in the San Diego, Orange County, and Los Angeles offices. Her practice is concentrated in tax, trust, and estate matters with emphasis in estate planning, trust and probate administration, and estate and gift taxation. Ms. Hafen employs advanced estate planning techniques, including grantor retained annuity trusts, family partnerships, limited liability companies, charitable remainder trusts, defective grantor trusts, insurance planning, public charities, and private foundations. She also advises clients regarding succession planning for closely held businesses. Ms. Hafen has experience in state and local taxation, including income taxation, sales and use taxation, and property taxation, as well as issues regarding residency and domicile. She also represents clients in front of the California state and local taxing authorities, and the Internal Revenue Service. 

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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • CPE credit is not available on recordings.

  • BARBRI is a NASBA CPE sponsor and this 90-minute webinar is accredited for 1.5 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, November 17, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. Section 2516 provisions exempting transfers between former spouses

II. Grantor trust rules under current tax law

III. Kick-out provisions and impact on taxability of transfers between former spouses

IV. Section 671

V. Drafting and administrative strategies to minimize income and gift tax impact of trust transfers

The panel will review these and other key issues:

  • Transfers between former spouses incident to divorce that fall outside the tax-exempt provisions of Section 2516
  • Grantor trust rules as they apply in divorce scenarios
  • How "kick-out" provisions in estate and trust documents impact grantor trust status
  • Strategies to minimize income and gift tax consequences from trust distributions to former spouse under current tax law
  • Tax reporting requirements

Learning Objectives

After completing this course, you will be able to:

  • Identify transfers from grantor trusts to former spouses incident to divorce that can create income or gift tax consequences
  • Recognize the impact of "kick-out" provisions on transfers to a former non-grantor spouse
  • Determine strategies for minimizing the taxability of divorce-related trust transfers
  • 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 at mid-level within the organization, drafting wills and trust documents, supervising other estate planners/accountants. Specific knowledge and understanding of gift tax rules and trust transfer provisions; familiarity with valuation provisions and allocation rules governing trust transfers.

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.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

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 .