Trust, Estate, and Gift Taxation: Recent Developments, Allocation of GST Exemption, Preserving Asset Basis, and More

The rules concerning trust, estate, and gift tax planning are continually changing. Recently, the IRS issued Revenue Procedure 2022-32 which extends the time frame to elect portability of the deceased spouse's unused exemption to five years from the date of death. However, not all estates are eligible for this relief.

The Treasury issued final anti-clawback regulations in 2019. These regulations provide assurance that completed gifts made under a record-high exemption would not later be pulled into a decedent's estate when the exemption sunsets in 2026 or if the current exemption is otherwise reduced. In response to perceived abuses, proposed regulations issued in 2022 outline exceptions to the relief granted under the regulations. Most notably, exceptions include gifts where the donor retains an interest in the asset transferred.

In addition to Revenue Procedure 2022-32 and the proposed anti-clawback exception regulations, there are also proposed regulations addressing administrative expense claims against an estate and other matters, IRS Letter Rulings covering issues with GST allocations and exemptions, trust division and modification's impact on preserving basis, and other issues impacting trust, gift, and estate tax. Trust and estate advisers must stay abreast of new and proposed legislative changes to minimize gift and estate taxes and ensure the seamless transfer of an estate's assets.

Listen as our panel of transfer tax experts reviews the latest developments in estate and gift tax for trust and estate professionals.

1. Introduction: recent trends in trust, estate, and gift taxation
2. GST transfer tax and allocation of exemption
3. Rev Proc 2022-32; portability election
4. Trusts; preserving asset basis and other tax attributes
5. Proposed regulations
   1. Exceptions to anti-clawback rules
   2. Administrative expenses, claims against an estate, interest expense
6. Cryptocurrency and digital assets in estates
7. Recent cases and other developments

The panel will explore these and other critical issues:

• Which estates are eligible for the extensions of time to elect portability under Rev Proc 2022-32?
• How can trust division or modifications be used to preserve asset basis?
• How accrued interest and penalties are calculated under the proposed regulations
• What transfers are considered de minimis and not subject to the exceptions to the anti-clawback regulations?
• How proposed regulations affect estate plans already in place

Learning Objectives

After completing this course, you will be able to:

• Identify estates that could benefit from the extension of time to file a portability election
• Determine deductible interest expense on accrued penalties and interest owed by an estate
• Decide how 2026 impacts current estate plans
• Ascertain which client's estate plans are affected by the proposed exceptions to the anti-clawback rules

• 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 estate and gift taxation and reporting, pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations.

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).