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Estate Planning for Flow-Through Entities: Minimizing Taxes for Partners, Shareholders, and Beneficiaries

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Wednesday, July 26, 2023

Recorded event now available

or call 1-800-926-7926

This webinar will offer estate planning strategies for partners and shareholders. Our panel of trust and estate advisers will provide suggestions to minimize taxes and point out tax hazards to avoid for owners of flow-through entities.

Description

Estates with flow-through entities require additional forethought and planning. Partnership interests can be either active or passive, depending on the partner's level of participation. The decedent's level of involvement may have been active; however, after death, the determination could be based on the fiduciary's participation.

Subchapter S corporation stock can only be held by qualifying shareholders. Nonresidents, individual retirement accounts, and foreign trusts, for example, are not qualified. Transfers of S corporation stock to an ineligible shareholder could jeopardize the entity's S-election and subject the owners to unnecessary tax. Fortunately, certain trusts and estates are allowed to hold S corporation stock for a limited period. Eligible trusts may decide to elect to be a QSST, qualified subchapter S trust, or an ESBT, electing small business trust, to hold the stock past this period.

Lifetime transfers and other planning strategies can avoid unanticipated tax consequences for flow-through entities. Avoiding potential tax traps for taxpayers holding business interests is critical for tax advisers working with taxpayers owning partnerships and S corporations.

Listen as our panel of trust and estate experts offers planning strategies for owners of flow-through entities to reduce taxes paid by investors and their heirs.

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Outline

  1. Estate planning for flow-through entities: introduction
  2. Partnerships
  3. S corporations
  4. Gifting strategies
  5. Other planning techniques

Benefits

The panel will cover these and other key issues:

  • When should a trust consider an election to be a QSST?
  • How the level of participation is determined for an LLC interest held by a trust
  • Succession planning for pass-through entities
  • Which shareholders might benefit from gifting their interest in an S corporation?

Faculty

Rappaport, Matthew
Matthew E. Rappaport, Esq., LL.M.
Vice Managing Partner
Falcon Rappaport & Berkman

Mr. Rappaport counsels clients on technical and complex tax issues. He works closely with closely held business owners,...  |  Read More

Gradman, Andrew
Andrew L. Gradman, Esq., LL.M.
Of Counsel
Falcon Rappaport & Berkman

Mr. Gradman is Of Counsel in FRB’s Taxation Practice Group. He advises clients on a wide range of federal and...  |  Read More

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