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Estate Planning for Private Equity and Real Estate Fund Managers

Estate and Tax Planning Strategies, IRC Section 2701, Carried Interest Transfer Planning, Profits Interests, and More

A live 90-minute CLE/CPE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Friday, January 10, 2025

1:00pm-2:30pm EST, 10:00am-11:30am PST

(Alert: Event date has changed from 12/18/2024!)

or call 1-800-926-7926
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This CLE/CPE course will provide estate planning counsel and advisers an in-depth analysis of estate and tax planning strategies and opportunities for private equity and real estate fund managers. The panel will outline how planners can help structure transfers of carried interest to family members, dive into the particulars of IRC Section 2701, address profits interests, review issues with preferred partnerships, and discuss multidisciplinary strategies specialists are implementing for these clients.

Description

Private equity and real estate fund managers have tremendous planning opportunities for their interests if properly structured. Estate planners must identify potential income, estate, and gift tax issues for holders of these interests and implement effective techniques to minimize or avoid unintended tax consequences.

Most private equity or real estate funds use a management fee structure or carried interest--a share in the fund's profits more than a minimum return--as part of its economic structure providing revenue and other assets and equity to fund managers. Because these interests can appreciate substantially if a fund is successful, they are ideal assets to plan for use in various estate planning techniques.

Careful planning is required to take advantage of the opportunities that carried interest and other equity or assets stemming from being a fund manager offers for transferring wealth. IRC Chapter 14 governs the valuation of certain lifetime transfers to family members. A fund manager's transfer of interest to one or more family members may trigger gift tax consequences under Chapter 14 as well as under traditional gift tax principles.

Trusts and estates counsel must implement planning techniques to assist managers of real estate funds or private equity firms geared toward facilitating the transfer of wealth, including common techniques such as GRATs, installment sales, intra-family loans, the use of vertical slice safe harbor rules, and other available options.

Listen as our experienced panel discusses estate planning challenges for real estate fund and private equity interest holders. The panel will discuss planning techniques that take advantage of wealth transfer opportunities while avoiding unintended adverse tax consequences.

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Outline

  1. Income, estate, and gift tax issues
  2. Use of GRATs, CLATs, and defective grantor trusts
  3. Planning with carried interests
  4. IRC Section 2701
  5. Valuation issues

Benefits

The panel will review these and other key issues:

  • Income, estate, and gift tax ramifications of fund transfers and private equity interests
  • Utilizing GRATs, CLATs, and defective grantor trusts to minimize taxes
  • Key planning considerations for carried interest
  • Issues stemming from Section 2701
  • Valuation issues and their impact on overall planning

Faculty

Berselli, Brent
Brent Berselli
Partner
Holland & Knight

Mr. Berselli is a partner in Holland & Knight's Portland office and is a member of the firm's Private...  |  Read More

Khetan, Shishir
Shishir R. Khetan, CFA
Managing Director
Stout Risius Ross

Mr. Khetan is a Managing Director in the Valuation Advisory group. He has extensive global experience in corporate...  |  Read More

Attend on January 10

See NASBA details.

Cannot Attend January 10?

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.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video