Inclusion of Capital Gains in Distributable Net Income for Trusts and Estates: Allocations for Optimal Tax Treatment
Fiduciary Accounting Rules, Treas. Reg. Section 643(a)-3(b) Provisions, State Unitrust Rules, Crummey Powers
Note: CPE credit is not offered on this program
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will provide trust, estates, and tax counsel an in-depth analysis of the rules and practices covering inclusion of capital gains in distributable net income (DNI) for trusts and estates. The panel will review the requirements within trust documents to allow treating capital gains as DNI. It will explore state and local requirements for inclusion of capital gains in fiduciary accounting income (FAI) where the trust's governing document does not contain such a provision.
Outline
- IRC Section 643 and FAI rules
- Including capital gains in DNI; Treas. Reg. Section 643(a)-3(b)
- State unitrust rules
- Crummey powers
- Non-tax considerations and best practices for estate planners and tax counsel
Benefits
The panel will review these and other key issues:
- The requirements of IRC 643 on the treatment of capital gains and FAI
- Structuring trust documents to allow the inclusion of capital gains in DNI
- Distribution of assets and the total-return-investing under the UPAIA
- Local and state provisions that may allow capital gains inclusion in DNI
Faculty

K. Eli Akhavan
Senior Counsel
Norton Rose Fulbright US
Mr. Akhavan focuses his practice on domestic and international estate, asset protection and tax planning for high... | Read More
Mr. Akhavan focuses his practice on domestic and international estate, asset protection and tax planning for high net-worth individuals and their families. His clients include executives, real estate owners and professionals, nursing home operators, professional athletes, entrepreneurs, owners of closely-held businesses and hedge fund and private equity professionals. Additionally, Mr. Akhavan represents family offices in their tax, estate and business succession planning needs. He is a is a widely published author and frequent speaker on estate planning issues.
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Jordan Ware
Shareholder
Winstead
Ms. Ware is a member of Winstead's Wealth Preservation Practice Group. She concentrates her practice on... | Read More
Ms. Ware is a member of Winstead's Wealth Preservation Practice Group. She concentrates her practice on estate and business planning, taxation and estate and trust administration for high net worth individuals, executives and business owners.Ms. Ware provides guidance primarily in the areas of estate and gift tax planning, business succession planning, charitable planning, general tax and corporate planning and estate and trust administration. She is a frequent speaker at estate planning and tax seminars around the country.
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