In his 2016 Trachtman Lecture, former ACTEC President Dennis I. Belcher outlined the need for change in the estate planning profession. He envisioned a future in which ACTEC Fellows would serve as our clients’ trusted advisors across multiple areas of law. One area that Dennis identified as a part of this role was income tax planning.
Estate planning has historically focused on estate taxes. Changes in the applicable exclusion amount, and the introduction of portability, have thrust income tax planning considerations into the forefront of tools that estate planners need to have in their toolkits. For many of our clients, ACTEC Fellows will fulfill the role of trusted family advisor in part through income tax planning advice. This program will provide the foundation for everything estate planners need to know about income taxes. It is intended not only for Fellows who are unfamiliar with income taxes, but also for those who are very knowledgable. The speakers will share advanced techniques and strategies that all Fellows can use to achieve better tax results for our clients.
Panelists for Stand-Alone: David A. Berek, Chicago, IL Professor Samuel A. Donaldson, Atlanta, GA S. Stacy Eastland, Houston, TX Gregory V. Gadarian, Tucson, AZ Edwin P. Morrow, III, Cincinnati, OH Brian C. Sparks, Tampa, FL Karen Sandler Steinert, Minneapolis, MN
WEDNESDAY/DAY 1
Session 1: Introduction and Income Taxation of Individuals
The panel will examine the interrelationship between estate planning and individual income taxes, including the net investment income tax, the Self Employed Contributions Act (SECA), and the Federal Insurance Contributions Act (FICA); as well as the effects of the 2017 Tax Cuts and Jobs Act.
Speakers: Professor Samuel A. Donaldson Gregory V. Gadarian
Session 2: Social Security and Medicare Benefits
This session will review the eligibility rules for Social Security and Medicare, the federal and state income taxation of Social Security, and the ability of dependents to receive these benefits.
Speaker: Gregory V. Gadarian
Session 3: Income Taxation of Estates and Trusts
In this session the panel will examine the federal income taxation of estates and trusts. Planning techniques, including sprinkle and spray trusts, treating capital gains as part of distributable net income (DNI), qualified business income deductions, and beneficiary withdrawal rights will be covered. State income tax issues will also be discussed, including updates on the Kaestner and Fielding cases.
Speakers: David A. Berek Professor Samuel A. Donaldson Karen Sandler Steinert
Session 4: Income Taxation of C Corporations, S Corporations and Partnerships
This session will explore the next step in incorporating income taxation into our clients’ estate plans, which is to understand the taxation of corporations and partnerships. The panel will provide an overview of income taxation of C corporations, S corporations, and partnerships and compare the benefits and drawbacks of each type of entity.
Speakers: Professor Samuel A. Donaldson S. Stacy Eastland Brian C. Sparks
THURSDAY/DAY 2
Session 1: C Corporations, S Corporations and Partnerships – Planning Opportunities and Special Considerations
In this session the panel will examine planning opportunities and issues for each type of entity. The use of exchange funds, profits interests, S corporations and possible exit strategies will be discussed.
Speakers: S. Stacy Eastland Brian C. Sparks
Session 2: C Corporations, S Corporations and Partnerships – Strategies and Planning Techniques
This session will conclude our examination of the taxation of partnerships, C corporations and S corporations by examining planning strategies and techniques upon a member’s or shareholder’s death.
Session 3: Planning for Special Assets
This session will explore the special assets, such as income in respect of a decedent (IRD), and individual retirement accounts (IRAs) and qualified retirement accounts, that play a prominent role in income taxation of individuals and trusts. The speaker will provide an overview of issues and discuss the techniques for planning for these assets through the use of trusteed IRAs, conduit trusts and accumulation trusts.
Speaker: Edwin P. Morrow, III
Session 4: Wrap up and Q&A
In the final session the panel will summarize the highlights of the program and answer questions.
Speakers: S. Stacy Eastland Gregory V. Gadarian
Recorded June 26 - 27, 2019 in Vancouver, BC