BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Estate Planning

Date & Time
  • event Date

    Wednesday, July 1, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

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

$297.00
CLE
ALL

This CLE course will provide trusts and estates counsel guidance on critical issues relating to S corporations in estate planning. The panel will discuss principal tax rules relating to S corporations that significantly impact estate planning and offer techniques for the use of multiple grantor trusts, S corp trusts, and other items to avoid unintended tax liability.

Faculty

Cara Howe Santoro
Attorney
Holland & Knight LLP

Ms. Santoro focuses her practice on advising businesses, nonprofit organizations, and individuals on a variety of domestic and international tax matters, and counseling nonprofit entities on issues related to their tax-exempt status, including formation, governance, compliance, restructuring, lobbying, international grant making and unrelated income. She also assists corporations in various tax matters including executive compensation, qualified benefit plans, regulatory compliance and tax planning in both the individual and corporate context.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Stefania L. Bartlett
Director
CliftonLarsonAllen

Ms. Bartlett specializes in trusts and estates, providing planning and compliance services related to fiduciary income tax, estate tax and gift tax. She also advises clients on charitable gift planning, charitable contributions and tax compliance. Ms. Bartlett is a licensed attorney and is admitted to practice in Connecticut, New York and the United States Tax Court.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

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. The 2017 tax reform law created 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.

Outline

  1. Qualified shareholders and eligibility rules for S corps
  2. Challenges of S corp ownership interests in estate planning
  3. Evaluating current S corporation trust structures to see if they still achieve optimal tax benefits
  4. Application of Section 199A and the 20% deduction on qualified pass-through business income
  5. Transfers of S corp interests
  6. Navigating reporting and administrative issues

Benefits

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
  • The application of the 20% deduction on qualified pass-through business income
  • Current differences in tax treatment between an ESBT and a QSST holding S corporation stock
  • Essential considerations for transfers of S corporation interests