Grantor Trusts After Divorce: Tax Reform, Fiduciary Challenges, and Minimizing Tax for Trust Transfers to Former Spouse
Gift Tax Exemption on Divorce Transfers, Grantor Trust Rules, Gift-Splitting and Income Tax Rules
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE/CPE course will provide estate planners and fiduciary advisers with a practical, post-tax reform, guide to administering a grantor trust after the grantor’s divorce. The panel will describe adverse income tax consequences due to inadequate drafting of the trust, detail corrections and critical terms to include in grantor trusts to avoid triggering recognition, and address post-divorce steps for fiduciaries to minimize the tax impact of divorce on a grantor trust.
Outline
- Section 2516 provisions exempting transfers between former spouses
- Grantor trust rules of Section 682
- Kick-out provisions and impact on taxability of transfers between former spouses
- Section 671
- Drafting and administrative strategies to minimize income and gift tax impact of trust transfers after tax reform
Benefits
The panel will review these and other key issues:
- Transfers between former spouses incident to divorce that fall outside the tax exempt provisions of Section 2516
- Grantor trust rules as they apply in divorce scenarios
- How “kick-out” provisions in estate and trust documents impact grantor trust status
- Strategies to minimize income and gift tax consequences from trust distributions to former spouse after tax reform
- Tax reporting requirements
Faculty
Audrey G. Young
Of Counsel
McLane Middleton
Ms. Young focuses her practice in the area of trusts and estates law and taxation. She counsels individuals, families... | Read More
Ms. Young focuses her practice in the area of trusts and estates law and taxation. She counsels individuals, families and family offices on estate planning matters and business succession planning, including income tax planning and retirement, marital and charitable planning. She works with RSM tax professionals nationally on trust administration issues and estate and trust planning for individuals, families and family offices. She resolves gift and estate tax return examinations at the state and federal level. She presents nationally at conferences on topical estate, trust and gift tax issues. Her planning expertise is concentrated on the income tax aspects of estate planning, including fiduciary income tax minimization strategies (state and federal), charitable planning, marital planning, retirement planning and opportunities presented by decanting.
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Kenneth A. Goldstein
Partner
Horwood Marcus & Berk
Mr. Goldstein focuses his practice on trust and estate planning for individuals and sophisticated tax planning for... | Read More
Mr. Goldstein focuses his practice on trust and estate planning for individuals and sophisticated tax planning for businesses. He is knowledgeable regarding the latest strategies in federal and state tax planning, including the most advantageous exemptions for business owners with complex business structures. As both an attorney and CPA, he provides the full range of estate and tax planning solutions to his clients, including income, estate, gift and generation-skipping transfer tax planning, wills and trusts, taxpayer representation in income, estate and gift tax audits, planning for owners of closely-held businesses with diverse interests, including real estate and a variety of other non-cash assets, operating and shareholder agreements, buy/sell arrangements and succession planning, multi-generational wealth planning, including creditor protection and charitable planning.
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