GST Inclusion Ratios and Applicable Fractions for Estate Planners: Rules, Exceptions and Tax Calculations
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE course will provide estate planning counsel and advisers with a thorough and practical exploration to the computation of the generation-skipping transfer tax inclusion ratio. Inadvertent seemed allocations can cause a Trust to stray from the ideal of an inclusion ratio of zero or one. Understanding the implications and potential solutions to mixed inclusion ratio trusts is critical to effective GST planning and rehabilitation of flawed planning.
Outline
- IRC 2642 structure
- Inclusion ratio defined
- Applicable fraction defined
- Treatment of inclusion ratios in severance of GST-impacted trust into two or more trusts
- Special rules for Charitable Lead Annuity Trusts
- Calculation of inclusion ratio
- Computation of applicable fraction
- Planning implication of pre-transfer inclusion ratio and fraction calculations
- Situations and subsequent transfers requiring recomputation of inclusion ratio and applicable fraction
Benefits
The panel will discuss these and other important topics:
- How to spot trusts with an inclusion ratio greater than zero
- Proactively identifying valuation opportunities when calculating inclusion ratios
- The inter-relation between inclusion ratio and applicable fraction under Section 2642 and its regulations
- Special rules for CLATs and other types of trusts in calculation of inclusion ratio and imposition of GST tax
- Regulatory guidance for calculating numerator and denominator of applicable fractions
Faculty
Celeste C. Lawton
Partner
Norton Rose Fulbright US
Ms. Lawton's practice is focused on wealth transfer planning, assisting clients in all aspects of their estate... | Read More
Ms. Lawton's practice is focused on wealth transfer planning, assisting clients in all aspects of their estate planning, including advising clients with respect to marital property issues, implementing complex transfer tax planning strategies, preparing and filing gift tax returns, creating and reorganizing business entities, and creating private foundations. She also has experience preparing non-judicial settlement agreements and receipt and releases related to trust terminations and trustee resignations. She also counsels trust and estate fiduciaries and beneficiaries in the handling of complex trust and estate administration issues, including the management and distribution of trust and estate assets and preparation of estate tax returns.
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Diana S.C. Zeydel
Shareholder
Greenberg Traurig
Ms. Zeydel is the National Chair of the firm’s Trusts and Estates practice, and she focuses on estate, trust and... | Read More
Ms. Zeydel is the National Chair of the firm’s Trusts and Estates practice, and she focuses on estate, trust and tax planning for high net worth individuals and families. Her practice includes planning for U.S. and non-U.S. citizens and residents, and she specializes in sophisticated intra-generational wealth transfer strategies and business succession planning. She assists clients in litigated probate, trust and guardianship matters, and represents clients before the Internal Revenue Service in matters involving complex fiduciary income tax and estate, gift and generation-skipping transfer tax matters.
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Carmela T. Montesano
Greenberg Traurig
Ms. Montesano is an estate planning attorney who concentrates her practice in all aspects of estate planning, including... | Read More
Ms. Montesano is an estate planning attorney who concentrates her practice in all aspects of estate planning, including federal and state estate, gift, and generation-skipping transfer tax law, trust and estate administration law, and applicable state law relative to the transfer of ownership and control in family-owned businesses and properties. She prepares estate planning instruments, such as Wills and Revocable Trusts, irrevocable life insurance trusts (ILITs), grantor retained annuity trusts (GRATs), qualified personal residence trusts (QPRTs), intentionally defective grantor trusts (IDGTs), qualified subchapter S trusts (QSSTs), electing small business trusts (ESBTs), sales to intentionally defective grantor trusts, private annuity sales, and modification of irrevocable trusts.
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