Advanced Trust Drafting for Income Tax Minimization: Including Capital Gains in DNI, Push-Outs, and More
Managing the Disparity in Income Tax Treatment Between Beneficiary and Trust
Note: CPE credit is not offered on this program
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will provide estate planning counsel with a comprehensive understanding and application of best practices in tax planning and trust document drafting to minimize income tax consequences of trust income. The panel will provide a thorough review of the rules and practices covering inclusion of capital gains in distributable net income (DNI) for trusts and estates and other critical considerations for minimizing income taxes on trust receipts through careful structuring of the trust's governing instrument.
Outline
- Default capital gains treatment inclusion in the corpus
- Treas. Reg. Section 643(a)-3(b) provisions for including cap gains in DNI
- The instrument provides for inclusion in income
- Allocated to corpus but treated as a distribution
- Actually distributed
- Push-out provisions and prioritizing distributions
- Use of Section 678 withdrawal powers
- Non-tax considerations
- Drafting provisions for income tax minimization
Benefits
The panel will review these and other key issues:
- What are the general requirements of IRC 643 on treatment of capital gains and FAI?
- How can the trust document be structured--and interpreted--to allow the inclusion of capital gains in DNI?
- What are local and state provisions that may allow capital gains inclusion in DNI?
- Income push-out provisions
- What are best practices for income tax minimization on trust accumulation?
- How to properly consider available tax elections.
Faculty
Robert S. Barnett, JD, MS (Taxation), CPA
Partner
Capell Barnett Matalon & Schoenfeld
Mr. Barnett’s practice is highly concentrated in the areas of taxation, trusts, estates, corporate and... | Read More
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.
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Jeremiah W. (Jere) Doyle, IV
Senior Vice President
Bank of New York Mellon
Mr. Doyle provides clients with integrated wealth management advice on how to hold, manage and transfer their... | Read More
Mr. Doyle provides clients with integrated wealth management advice on how to hold, manage and transfer their wealth in a tax efficient manner. He is the editor and co-author of Preparing Fiduciary Income Tax Returns, a contributing author of Preparing Estate Tax Returns and Understanding and Using Trusts and a contributing author of Drafting Irrevocable Trusts in Massachusetts. He is a lecturer in law in the Graduate Tax Program at Boston University School of Law.
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