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Gift Tax Fundamentals: Split Gifts, Skip Persons, Front-Loaded 529 Gifts, SCINs, Crummey Powers, Preparing Form 709

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

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Conducted on Tuesday, December 3, 2019

Recorded event now available

This course will explain the fundamentals of gift tax for advisers new to Form 709, and provide a review for seasoned professionals wanting to brush up on the specifics of gift transfers. Our panel of experts will explain when gift tax returns should be filed, skip versus non-skip persons, and the preparation of Form 709. The speakers will review reporting considerations for the most frequently made gifts, including life insurance transfers and premiums, self-cancelling installment notes (SCINs), Crummey powers, and front-loaded IRC 529 contributions.

Description

Often Form 709 preparation is handed over to seasoned tax professionals because they are adept at preparing 1040s, their client has made a taxable gift, or there is no separate trust and estate staff to prepare these returns. Gift tax considerations are complicated. Basic concepts include understanding the interplay of the unified exemption ($11.4 million in 2019) with the estate tax, the annual exclusion of $15,000, which allows a gift to escape a required tax return filing, and the difference between direct and indirect skips. Practitioners must be able to advise clients on the consequences of making gifts and the opportunity to avoid gift tax by properly making gifts for medical expenses and education.

People regularly make gifts requiring the preparation of Form 709. These may include front-loaded Sec 529 contributions and split gifts. Once basic concepts are understood, Form 709 returns can be properly prepared and filed.

Listen as our panel of experts explains the fundamental of gift tax reporting, including how and when to file split gift returns, returns involving life insurance premiums, Crummey notifications, and when to file returns even if gifts are less than the annual exemption.

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Outline

  1. Transfers by gift
  2. The lifetime exemption
  3. The annual exclusion
  4. Educational, medical, and charitable gifts
  5. Skip and non-skip persons
  6. Filing requirements
  7. Filing when not required
  8. Reporting common gifts
  9. Life insurance
  10. Crummey powers
  11. Front-loaded Section 529 contributions
  12. Splitting gifts
  13. Preparing Form 709

Benefits

The panel will review these and other important issues:

  • What is a taxable gift?
  • What is a reportable gift?
  • When should Form 709 be filed, even if not required?
  • What are Crummey powers?
  • How to prepare Form 709 for common gifts

Faculty

Allison, Gregory
Gregory L. Allison, JD, CPA/PFS, CFP®
Shareholder
Schneider Downs & Co.

Mr. Allison focuses on estate and succession planning for business owners, executives, and high-net-worth individuals....  |  Read More

LaSota, Melanie
Melanie M. LaSota, CPA, JD
Director of Estate and Trust Tax Services
Schneider Downs

Ms. LaSota specializes in estate and succession planning for owners and executives of closely held businesses, which...  |  Read More