Come learn the six income tax issues involved in funding bequests, including whether the distribution carries out DNI and if so, how much DNI, whether capital gain may or is required to be recognized when funding a bequest with appreciated property, and what is the holding period and basis of the assets distributed to the beneficiary.

In the past decade, historically low interest rates meant families could transfer wealth by making modest principal gifts rather than large ones. That’s because they could leverage the future growth of their assets using borrowed funds to boost future returns. Thanks to minimal borrowing costs, such “leveraged strategies” flourished in low-interest environments.

Today, interest rates have eased modestly from their peak, but they still reflect a somewhat restrictive Federal Reserve stance rather than a stimulative one. As a result, families continue to grapple with higher capital costs. This session will cover estate planning techniques that will struggle and those will thrive as interest rates soar.

This session will discuss how to make changes to an irrevocable trust. Many of the dynasty trusts that we create last for a long time and there is often the need to make changes to the trusts. This can be done by exercising a power of appointment, by agreement, by decanting and by Judicial amendment. There may be adverse gift or generation skipping tax consequences to the amendment. We will look at the unintended consequences of the changes and how to avoid these. We will look at how to add flexibility to documents without adverse tax consequences. Finally, we will look at how to use these changes to effect positive tax results. 

The Gift Tax Return, Form 709, has changed and the changes are substantial. This session will discuss the reasons behind the changes, what the changes are that practitioners need to be aware of and what you need to know and do going forward. 

This session discusses the various issues and alternatives that arise with respect to succession planning for the owners of privately-held businesses. Gifting the business to family members is discussed. Are there suitable successors within the family? Will there be sufficient liquidity to address financial needs if the business interest is given away? We will consider entering into a succession arrangement with fellow owners of the business. Concerns regarding entering into and structuring a buy-sell agreement will be reviewed. The alternative of selling the business to a third party will be explored, considering both the tax and non-tax issues that arise in this situation.  

This session will provide a comprehensive overview of key international tax considerations for estate and trust professionals. Topics include U.S. person reporting obligations, foreign grantor trusts, beneficial ownership reporting, FIRPTA, sourcing rules, tax treaties, covered expatriation, and relevant estate, gift, and foreign tax credit forms—equipping attendees to navigate cross-border complexities with greater clarity and compliance.