Deciding and Converting Between Grantor and Nongrantor Trust Status: Evaluation of Planning Opportunities and Potential Pitfalls
Switching Off Grantor Trust Features in Existing Trusts, Structuring Multiple Trusts to Preserve Deductions
A live 90-minute CLE/CPE video webinar with interactive Q&A
This CLE/CPE course will provide estate planning counsel with a thorough and practical guide to converting grantor trusts to non-grantor trusts and evaluating the potential tax benefits and disadvantages of such conversion. With the current environment's continued focus on income tax planning in conjunction with estate tax planning, the panel will cover methods of changing the tax classification from grantor to non-grantor and the issues and effects of this change. The webinar will also consider the risks stemming from conversion, the potential disadvantages of non-grantor trusts, and the risks associated with reverting to grantor trust status in the future in certain scenarios.
Outline
- Converting grantor trusts to non-grantor trusts
- Methods for the conversion
- Potential pitfalls and tax implications
- Potential benefits of non-grantor trusts
- Federal and/or state income tax savings and deduction benefits
- Cross-border scenarios
- Other potential tax benefits
- Incomplete gift non-grantor trusts
- Potential disadvantages of non-grantor trusts
- Weighing long-term disadvantages against short-term benefits (impact on basis planning, loss of certain transfer tax benefits and planning opportunities, etc.)
- Cross-border scenarios
- Conversion back to grantor trust
- Current status of authorities
- Potential risks
Benefits
The panel will review these and other relevant topics:
- Switching off grantor trust status of existing trusts
- State income tax benefits and treatment of non-grantor trusts
- Possibility for enhanced deductions
- Tax impact of complete gift trusts vs. incomplete gift trusts
- Potential benefits when dealing with Qualified Small Business Stock
- Potential income and transfer tax disadvantages of non-grantor trusts
- Using incomplete gift non-grantor trusts (INGs) to minimize state income tax
Faculty
Cynthia D. (Cindy) Brittain
Partner
Holland & Knight
Ms. Brittain is a private wealth services attorney in Holland & Knight's Century City and Newport... | Read More
Ms. Brittain is a private wealth services attorney in Holland & Knight's Century City and Newport Beach offices. She works closely with private clients in the U.S. and around the world, designing efficient strategies that maximize tax benefits for individuals and their companies while meeting personal wealth transfer and business succession needs. Ms. Brittain has decades of experience advising high-net-worth and ultra-high-net-worth individuals and families on domestic and international income and estate tax planning strategies and philanthropic endeavors. Her practice offers significant cross-border experience for families whose members are multinational and whose companies have a global footprint. Ms. Brittain helps clients navigate complex issues relevant to international and domestic wealth and asset transfers. She also assists with pre-immigration planning and international corporate tax matters, leveraging her extensive experience with the cross-border regulatory laws that affect planning and compliance. Ms. Brittain is frequently sought out by international private clients and their advisory teams in urgent, high-stakes situations to help mitigate legal and reputational risk.
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Shudan Zhou
Partner
Norton Rose Fulbright US
Ms. Zhou focuses her practice on counseling high net worth individuals, trustees, and financial institutions on the... | Read More
Ms. Zhou focuses her practice on counseling high net worth individuals, trustees, and financial institutions on the US tax implications of wealth transfer strategies, with an emphasis on international income and estate tax planning. She has substantial experience advising clients on all aspects of FATCA and CRS as well as various withholding tax and disclosure regimes. Ms. Zhou frequently counsels clients on the US tax consequences of expatriation from and immigration to the United States, and of US inbound and outbound investment structures. She also advises on the creation, administration and governance of offshore trust structures.
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Cannot Attend April 17?
Early Discount (through 03/21/25)
You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.
