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Estate Basis Consistency Rules for Fiduciaries: IRS Final Regulations, Reporting Requirements, Distribution Strategies

A live 90-minute CLE/CPE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
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Wednesday, May 14, 2025

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926
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This CLE/CPE course will provide estate planners and advisers to trusts and estates with a practical guide to estate basis consistency reporting requirements as they impact trustees and fiduciaries. The panel will discuss IRS final regulations and key issues for fiduciaries, explain the IRS pronouncements on coordinating basis reporting with the filing of the estate tax return and valuations reported on Form 8971, and offer strategies to help fiduciaries avoid adverse tax consequences in estate distributions in light of the final regulations.

Description

The basis consistency rules present challenges to tax compliance advisers, fiduciaries, and estate counsel. The rules create filing obligations for executors of taxable estates but also impact distribution decisions and litigation strategies. Estate planners must grasp the wide-ranging impact of the estate basis consistency rules and planning strategies to avoid unnecessary taxes and penalties.

IRC Sections 1014(f) and 6035 set the guidelines for the basis consistency regime. IRC Section 1014(f) mandates that an asset's reported estate tax value and the basis of the asset when acquired by the estate beneficiary must be consistent. IRC 6035 requires estate executors to identify the value of property reported on the estate tax return to both the IRS and the estate beneficiaries.

The requirement to furnish basis information to all beneficiaries creates a substantial burden on fiduciaries. Additionally, the mandate to match basis on assets between Form 706 and the beneficiaries' tax returns complicates determining and making distributions. Executors will have to balance the tax situations of the beneficiaries with the needs of the estate in distributing property.

Recently, the IRS finalized and issued the estate basis consistency rules which provide some relief to estate planners and families handling inherirances relating to reporting to beneficiaries, rules for property transfers, and other key items. However, challenges still remain that must be considered by estate planners.

Listen as our experienced panel provides a comprehensive and practical guide to the estate basis consistency rules as they impact executors and estate planners.

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Outline

  1. Section 1014 basis consistency rules
    1. IRS final rules
    2. Estates subject to basis consistency
    3. Property subject to basis rule
    4. Final value determination methods
    5. Zero basis rule and other tax consequences due to omission or non-reporting
  2. Section 6035 reporting requirements
  3. Supplemental reporting requirements
  4. Distribution considerations and strategies

Benefits

The panel will review these and other relevant topics:

  • Key provisions of recent IRS final estate basis consistency rules
  • Reporting property on Form 8971
  • Coping with scenarios in which the executor does not wish to disclose asset basis values to a particular beneficiary
  • Rules on post-mortem basis adjustments to estate assets
  • Penalties for failure to disclose all assets on Form 8971 and Schedule A
  • How fiduciaries should remedy reporting mistakes or failures
  • Distribution concerns and strategies under the basis consistency reporting rules

Faculty

Balgaard, Heather
Heather G. Balgaard
Attorney
Monroe Moxness Berg

Ms. Balgaard is an integral part of the firm’s estate planning practice, bringing experience across all...  |  Read More

Jannol, Neal
Neal B. Jannol
Attorney
Law Offices of Neal B. Jannol

Mr. Jannol is a sole practitioner in Los Angeles at the Law Offices of Neal B. Jannol. He has been an attorney for more...  |  Read More

Attend on May 14

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Cannot Attend May 14?

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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