Current Developments in Estate and Gift Taxation: Rev Proc 2022-32 and Proposed Regulations

Extension of Time to Elect Portability, Exceptions to Anti-Clawback Rules, Deducting Admin and Interest Expense

Note: CLE credit is not offered on this program

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

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Conducted on Wednesday, November 16, 2022

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Course Materials

This webinar will address the latest developments in gift and estate taxation, including the extension of time to elect portability, the proposed exceptions to the anti-clawback regulations, and other recent developments. Our panel of generational wealth experts will explain which estates are impacted by recent changes and the new provisions' details, as well as offer planning tips to minimize related transfer taxes.

Description

The rules concerning estate tax planning are continually changing. Most recently, the IRS issued Revenue Procedure 2022-32 which extends the time frame to elect portability of the deceased spouse's unused exemption (DSUE) to five years from the date of death. This was issued in response to the significant number of private letter ruling requests to elect portability after the original two-year window. Not all estates are eligible for this relief. The decedent must not have had an estate return filing obligation and must be a U.S. citizen or resident.

In response to a potential decrease in the current estate tax exemption, Treasury issued final anti-clawback regulations in 2019. These regulations assured estates and their advisers that completed gifts made under a record-high exemption ($12.06 million in 2022) would not later be pulled into a decedent's estate when the exemption sunsets in 2026 and reverts to $5 million or if the current exemption is otherwise reduced. In response to perceived abuses, proposed regulations issued in 2022 outline exceptions to this otherwise welcomed relief. Most notably, exceptions include gifts where the donor retains an interest in the asset transferred.

In addition to Revenue Procedure 2022-32 and the proposed anti-clawback exception regulations, there are also proposed regulations addressing administrative expense claims against an estate and other matters. Trust and estate advisers must stay abreast of new and proposed legislative changes to minimize gift and estate taxes and ensure the seamless transfer of an estate's assets.

Listen as our panel of transfer tax experts reviews the latest developments in estate and gift tax for trust and estate professionals.

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Outline

  1. Current developments in estate and gift taxation: introduction
  2. Revenue Procedure 2022-32: Extension of Time to File Portability Election
  3. Proposed regulations
    1. Exceptions to anti-clawback rules
    2. Administrative expenses, claims against an estate, interest expense
  4. Cryptocurrency and digital assets in estates
  5. Other developments

Benefits

The panel will explore these and other critical issues:

  • Which estates are eligible for the extensions of time to elect portability under Rev Proc 2022-32?
  • How accrued interest and penalties are calculated under the proposed regulations
  • What transfers are considered de minimis and not subject to the exceptions to the anti-clawback regulations?
  • How proposed regulations affect estate plans already in place

Faculty

Curatolo, Kristen
Kristen A. Curatolo
Partner
Kirkland & Ellis

Ms. Curatolo focuses her practice on wealth transfer planning, business succession planning, and charitable giving. She...  |  Read More

Karam, Bachir
Bachir P. Karam
Partner
Sullivan & Cromwell

Mr. Karam is a partner in Sullivan & Cromwell’s Estates and Personal Group. He represents wealthy individuals...  |  Read More

Lipoff, Lawrence
Lawrence M. Lipoff, CPA, TEP, CEBS
Director
CohnReznick

With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private...  |  Read More

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