Estate Planning Strategies for Minimizing the Net Investment Income Tax on Trusts and Estates
Reducing NIIT Through Distribution of Investment Income, Investment Allocation, Use of Grantor Trusts
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE course will provide guidance to estate planning counsel on strategies for eliminating or reducing the 3.8% net investment income tax (NIIT) on estates and trusts. The panel will discuss planning techniques that benefit both trusts and their beneficiaries, including options for distributing income to remove it from the calculation of NIIT.
Outline
- Review of NIIT mechanics and types of investment income
- Implication of NIIT on trusts and estates
- Planning strategies to reduce or eliminate NIIT
Benefits
The panel will review these and other key issues:
- In calculating income from passive activity, what constitutes material participation by a trust in a business?
- Which trust investment income is potentially subject to NIIT?
- How can investment income be distributed to trust beneficiaries without subjecting individuals to NIIT?
- What are the pros and cons of distributing investment income to avoid income tax implications?
Faculty
Sasha A. Klein, JD, LLM
Senior Vice President, Director of Trusts & Wealth Services
Sabadell Bank & Trust
Ms. Klein provides wealth and advisory services for high net worth individuals and their families. She serves as... | Read More
Ms. Klein provides wealth and advisory services for high net worth individuals and their families. She serves as vice-chair of the American Bar Association's Individual and Fiduciary Income Tax Committee and is a member of the Associations' Communications and Continuing Legal Education Committees. Ms. Klein formerly served as fiduciary counsel to Bessemer Trust, where she directed the fiduciary risk management group and chaired the Special Investments and Discretionary Committee.
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Mark R. Parthemer
Managing Director and Senior Fiduciary Counsel, Southeast Region
Bessemer Trust
Mr. Parthemer oversees Bessemer Trust’s legacy, estate planning and fiduciary services from the Miami through... | Read More
Mr. Parthemer oversees Bessemer Trust’s legacy, estate planning and fiduciary services from the Miami through Washington, DC offices. He leads the firm's Advanced Implication Modeling Team and a planning think tank group. Mr. Parthemer has served on the faculty for the University of Miami’s Heckerling Institute, as an adjunct professor at the Widener University School of Law, and as a guest lecturer at the University of Miami School of Law’s LLM program. He is a frequent national lecturer and published author on taxation, estate planning, trust law and wealth management.
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