SECURE 2.0 Act and Charitable Remainder Trusts: Planning Techniques and Key Considerations for Estate Planners

CRTs are income tax exempt irrevocable trusts that make payments to one or more individuals for life or a term of years, with the remaining assets distributed to one or more charities. Under the SECURE Acts, the 10-year rule will apply to most retirement plan inheritors and has renewed interest in using CRTs as IRA beneficiaries to mimic the stretch-out that was formerly available under pre-SECURE Act law.

The first part of the presentation will provide a basic overview of the rules governing CRTs and various types of CRT formats: CRATs, CRUTs, NI-CRUTs, NIM-CRUTs, and Flip-CRUTs. The second part of the presentation will review the post-death RMD rules for the six types of individual inheritors - the five categories of Eligible Designated Beneficiaries (EBDs) plus non-EDBs. The third and final part of the presentation will compare the advantages and disadvantages of using a CRT for each type of individual inheritor versus a conduit trust or an accumulation trust.

Listen as Salvatore J. LaMendola, Member at Giarmarco Mullins & Horton, discusses the SECURE Act's rules and requirements, changes stemming from SECURE Act 2.0, the asset protection and tax savings benefits, payment of IRA and 401(k) to CRT, and critical considerations in modifying and structuring CRTs in light of the SECURE Acts.

1. SECURE Acts; key provisions and remaining issues
2. Rules governing CRTs and various types of CRT formats
3. Post-death RMD rules
4. Key estate planning considerations and challenges
5. Structuring and utilizing charitable remainder trusts

The panelist will review these and other key issues:

• What are the SECURE Act rules when using CRTs?
• What should estate planners know about the SECURE Acts as they relate to the use of CRTs?
• What are the tax savings benefits of CRTs?
• What asset protection benefits are available through CRTs?
• What are the key provisions and potential challenges for estate planners for IRA payments and distributions?

Learning Objectives

After completing this course, you will be able to:

• Identify applicable rules under the SECURE Acts impacting CRT planning
• Understand the tax savings benefits of CRTs and key components to minimize taxes
• Identify the advantages and disadvantages that CRTs afford EDBs and non-EDBs over conduit trusts
• Identify the advantages and disadvantages that CRTs afford EDBs and non-EDBs over accumulation trusts

• 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.

Strafford Publications, 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

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