Estate Planning With S Corp Trusts After Tax Reform: QSSTs, ESBTs, and the 20% QBI Deduction
Navigating Tax Reform Changes and Pass-Through Income Deductions
Note: CPE credit is not offered on this program
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide estate planning counsel and advisers with a practical guide to the estate planning opportunities in using S corporation (S-corp) trusts particularly in light of the 20% pass-through Qualified Business Income (QBI) deduction for pass-through entities. The panelist will describe the forms of trusts available for holding S-corp stock, especially the Qualified Sub-S Trust (QSST) and the Electing Small Business Trust (ESBT), and will detail the activities eligible for the QBI deduction, explain the changes in ESBT and QSST treatment contained in the new law, and offer useful guidance on planning tools for pass-through entities to restructure business activities to qualify for tax savings. The panelist will also discuss how the limit on excess business loss operates for S-corps and trusts that hold their shares.
- Rules for trusts, especially QSSTs and ESBTs, holding S-corp stock
- Application of the new 20% deduction on qualified pass-through business income
- Differences between ESBT and QSST tax treatment
- Evaluating existing S corporation trust structures to see if they still achieve optimal tax benefits
The panelist will review these and other crucial issues:
- Maintaining trust qualification to hold S-corp stock
- How does the 20% pass-through income deduction work in the context of QSSTs and ESBTs?
- When would it make sense to have an ESBT hold S corporation stock?
- Drafting QSST and ESBT trust documents to maximize tax benefits
- Charitable deduction opportunities under the new law
Langdon T. Owen, Jr.
Since 1977, Mr. Owen has represented clients in transactions of up to tens of millions of dollars in a wide variety of... | Read More
Since 1977, Mr. Owen has represented clients in transactions of up to tens of millions of dollars in a wide variety of industries. He provides tax, business, and estate planning advice, structures various forms of business organizations, and advises on health care regulation and compliance issues. He lectures before bar groups and to the public on a variety of tax, estate planning, and business topics and has authored several articles in legal publications. He acts as a mediator in business disputes and serves as an arbitrator for a number of national arbitration agencies.Close