Allocating Capital Gains to Distributable Net Income in Estates and Trusts: Achieving Optimal Tax Treatment
Recording of a 110-minute CPE webinar with Q&A
This webinar will provide tax advisers and counsel with a drill down into the rules and practices covering inclusion of capital gains in distributable net income (DNI) for trusts and estates. The panel will review the requirements within trust documents to allow treating capital gains as DNI and will explore state and local provisions for inclusion of capital gains in fiduciary accounting income (FAI) where the trust’s governing document does not contain such a provision.
- FAI under IRC Section 643
- Treas. Reg. Section 643(a)-3(b) provisions for including cap gains in DNI
- Instrument provides for inclusion in income
- Allocated to corpus but treated as distribution
- Actually distributed
- State unitrust rules
- Crummey powers and “5-and-5” trust documents
- Non-tax considerations
The panel will review these and other key issues:
- What are the general requirements of IRC 643 on treatment of capital gains and FAI?
- How can the trust document be structured—and interpreted—to allow inclusion of capital gains in DNI?
- What states or localities allow total return investing under the UPAIA?
- What are local and state provisions that may allow capital gains inclusion in DNI?
Jeremiah W. Doyle, IV
Senior Wealth Strategist
BNY Mellon Wealth Management
Mr. Doyle provides clients with integrated wealth management advice on how to hold, manage and transfer their... | Read More
Mr. Doyle provides clients with integrated wealth management advice on how to hold, manage and transfer their wealth in a tax efficient manner. He is the editor and co-author of Preparing Fiduciary Income Tax Returns, a contributing author of Preparing Estate Tax Returns and Understanding and Using Trusts and a contributing author of Drafting Irrevocable Trusts in Massachusetts. He is a lecturer in law in the Graduate Tax Program at Boston University School of Law.Close
Buchanan & Patterson
Ms. Patterson specializes in tax, estate and financial transactions, with an emphasis on asset protection and... | Read More
Ms. Patterson specializes in tax, estate and financial transactions, with an emphasis on asset protection and succession planning. She advises grantors, fiduciaries and beneficiaries in matters involving the transfer, administration, investment and management of assets and is a consultant to attorneys and CPAs in fiduciary accounting, taxation and litigation. She has held Adjunct Faculty positions in the graduate tax programs at both USC and Golden Gate University.Close
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