Estate Planning for Income Tax Reduction: Strategies for Maximizing New Basis
Leveraging Estate Tax Inclusion, Partnerships, Trusts, and Powers of Appointment
Recording of a 90-minute CLE/CPE video webinar with Q&A
This CLE/CPE webinar will prepare estate planning counsel and tax advisers to unravel, understand, and utilize stepped-up basis for income tax purposes. The panel will outline specific techniques for estate tax planning to leverage the advantages of a new basis at death, which often is a step-up in basis.
Outline
- Strategies for intentional inclusion of assets in an estate
- Optimal basis increase trusts
- Risks and opportunities in GPOAs
- Other techniques to lower trust income tax
Benefits
The panel will review these and other key issues:
- When the intentional inclusion of assets in the estate tax is appropriate
- Assets that benefit the most from basis increase, and how to address this in powers of appointment
- Amending or administering LLC/partnerships to achieve the maximum "step-up" in basis
- Anticipating hidden dangers of "all to QTIP"/portability estate plans
- Practical solutions to hidden problems of typical disclaimer-based plans
- Optimal basis increase trusts--using formula testamentary GPOAs and LPOAs and the Delaware Tax Trap
- Comparing QTIP vs. use of formula general powers of appointment vs. using the Delaware Tax Trap
- State laws that many bar committees are working to change (or should be) to enable improved trust tax options
- Trust protector provisions to add GPOAs--dangerous or not?
- Opportunities for applying or adding OBIT techniques to preexisting irrevocable trusts
- Techniques other than basis to lower ongoing trust income tax
- Comparing 678(a) "beneficiary-defective" provisions vs. appointing/distributing income via K-1 per 643 regs
- How/when ongoing income tax provisions and burdens might be changed (and when not)
- Income tax shifting with powers of appointment (including to charity)
Faculty
L. Paul Hood, Jr., JD, LL.M, CFRE, FCEP
Consultant
Paul Hood Services
A native of Louisiana (and a double LSU Tiger), Mr. Hood obtained his undergraduate and law degrees from Louisiana... | Read More
A native of Louisiana (and a double LSU Tiger), Mr. Hood obtained his undergraduate and law degrees from Louisiana State University and an LL.M. in taxation from Georgetown University Law Center before settling down to practice tax and estate planning law in the New Orleans area. He has taught at the University of New Orleans, Northeastern University, The University of Toledo College of Law and Ohio Northern University Pettit College of Law. Mr. Hood has authored or co-authored seven books and over 500 professional articles on estate, charitable and tax planning and business valuation. A frequent contributor to Leimberg Information Services since its inception, he is a highly sought after speaker and consultant because of his innate ability to see through the complexity and explain difficult and even boring subjects in understandable and entertaining language and mince no words in doing so. Mr. Hood is an author, speaker and consultant on tax, estate and charitable planning. He also is a Vice-President with Thompson & Associates, a charitable estate planning firm. Mr. Hood's website is www.paulhoodservices.com.
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Edwin P. Morrow, III, J.D., LL.M. (Tax), MBA, CFP, CM&AA
Co-Chair, Estate Planning Group
Kelleher + Holland
Mr. Morrow is currently the Co-Chair of the Estate Planning Group of Kelleher + Holland, LLC, based in North... | Read More
Mr. Morrow is currently the Co-Chair of the Estate Planning Group of Kelleher + Holland, LLC, based in North Barrington, Illinois, concentrating on tax, asset protection, business succession and estate planning. Previously, he was a Wealth Strategist for Huntington and US Bank’s private banking advisory groups. Other experience includes research and writing of legal memoranda for the U.S. District Court of Portland, Oregon as a law clerk. He has a Master’s Degree in Tax Law (LL.M.) and Business Administration (MBA) and is a co-author of the Tools and Techniques of Estate Planning, a 1000 page resource guide on technical estate planning topics.
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