Interested in training for your team? Click here to learn more

Estate Planning With LLCs: Navigating Tax Challenges, Reporting Requirements, and Planning Strategies for Counsel

Key Provisions for Operating Agreements, Using LLCs to Invest in Real Estate, Gifting Through LLC Distributions, Tax Planning

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.

Tuesday, January 21, 2025

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

Early Registration Discount Deadline, Friday, January 10, 2025

or call 1-800-926-7926
Add to your calendar

This CLE/CPE webinar will provide estate planners with a practical guide to utilizing limited liability companies (LLCs) in estate planning under current tax law. The panel will discuss the income tax and asset protection benefits of LLCs and address the use of LLCs to shift income. The panel will provide insight into using LLCs for gifting and other effective tactics for utilizing LLCs in estate planning. The panel will also discuss the pass-through entity election for LLCs and application of the Corporate Transparency Act to LLCs.

Description

The use of an LLC in estate planning can shelter assets, reduce overall gift and estate taxes, and avoid probate. Although the increased estate exemption amount lessens the need to take aggressive valuation discounts on assets transferred into an LLC, the structures retain significant asset protection and income tax savings features.

LLCs provide flexibility in allocating rights to profits and capital and can be used to shift income and property appreciation. The general structure of an LLC involves transferring assets to the company while also retaining ownership and control over the transferred assets. Shares in the LLC are then granted to family members or other potential heirs/beneficiaries. By granting income shares to family members who may be in a lower income tax bracket, the managing member can reduce overall income taxes.

However, under current tax law, there are some complex tax implications, particularly under the capital ownership rules of IRC 704(e). Estate planners must grasp a complete understanding of applicable tax rules and regulations when funding LLCs through nontaxable transfers and sales, using distributions to shift income tax burdens and their interplay with other planning tools.

Finally, the application of the pass-through entity election for LLCs must be considered, and compliance with the Corporate Transparency Act will be required.

Listen as our experienced panel discusses structuring and operating LLCs for estate planning purposes, details how to withstand IRS scrutiny of transfers and operations, explores gifting through LLC distributions, and reviews other effective tactics for utilizing LLCs in estate planning.

READ MORE

Outline

  1. Using LLCs for asset protection and business continuation/succession planning
  2. Income tax planning opportunities with LLCs
  3. Key provisions for operating agreements
  4. Using LLCs with trusts and other wealth transfer vehicles
  5. Pass-through entity election
  6. Corporate Transparency Act

Benefits

The panel will review these and other relevant topics:

  • What are the income tax and asset protection benefits of LLCs?
  • Tax planning through lifetime gift of LLC interests
  • Key considerations when drafting the operating agreement
  • Utilizing trusts and key trust agreement provisions
  • Using partnership allocation rules and profits interests to shift the income tax burden to LLC members with lower marginal income tax rates

Faculty

Gadarian, Gregory
Gregory V. Gadarian
Partner
Gadarian & Cacy

Mr. Gadarian's practice focuses on tax strategy, estate planning and asset protection law. Previously, he was a...  |  Read More

Additional faculty
to be announced.
Attend on January 21

Early Discount (through 01/10/25)

See NASBA details.

Cannot Attend January 21?

Early Discount (through 01/10/25)

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.

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

CLE On-Demand Video