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 video webinar with Q&A
This CLE course will provide trust, estates, and tax counsel an in-depth analysis of the rules and practices covering the 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 including 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

Robert F. Brogan
President
Brogan Law Group
Mr. Brogan's boutique practice focuses exclusively on elder law, special needs planning and asset protection. He... | Read More
Mr. Brogan's boutique practice focuses exclusively on elder law, special needs planning and asset protection. He primarily concentrates on Medicaid planning, special needs planning, asset preservation, as well as estate and trust planning and administration. He has held leadership positions in the elder and special needs field at the national and state level. He is a nationally respected expert in analyzing public policy issues related to Medicaid benefits and healthcare.
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Gregory V. Gadarian
Partner
Gadarian & Cacy
Mr. Gadarian's practice focuses on tax strategy, estate planning and asset protection law. Previously, he was a... | Read More
Mr. Gadarian's practice focuses on tax strategy, estate planning and asset protection law. Previously, he was a Legislation Attorney on the staff of the Joint Committee on Taxation, U.S. Congress. Before that, he was an Attorney-Advisor to Judge Cynthia H. Hall of the U.S. Tax Court. He is the former Arizona State Chair of the American College of Trust and Estate Council, and is an Adjunct Professor at the University of Arizona College of Law.
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