Income Tax Consequences of Funding a Bequest: Specific, Pecuniary, and Residuary Distributions
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will explain the taxation of distributed assets and whether the distribution carries out DNI (distributable net income) to the beneficiary for fiduciaries and estate tax advisers. Our panel of fiduciary tax veterans will analyze specific, formula, and residuary bequests made to individuals and trusts to determine how the estate and its heirs are taxed.
- Funding bequests introduction
- Types of distributions
- Distributions and DNI
- Capital gains
- Holding period
- Distribution of substituted property
- Basis of assets
- Marital trusts
- Other considerations
The panel will cover these and other critical issues:
- Which distributions carry out DNI?
- When should an election be made under Section 643(e)(3) for recognition of gain by a trust or estate?
- How is the basis in appreciated assets determined by the beneficiary?
- When is a pecuniary bequest not taxable to a beneficiary?
- What are the three funding approaches outlined in Revenue Procedure 64-19 for marital pecuniary bequests?
Jeremiah W. (Jere) Doyle, IV
Senior Vice President
Bank of New York Mellon
Mr. Doyle provides clients with integrated wealth management advice on how to hold, manage and transfer their... | Read More
Mr. Doyle provides clients with integrated wealth management advice on how to hold, manage and transfer their wealth in a tax efficient manner. He is the editor and co-author of Preparing Fiduciary Income Tax Returns, a contributing author of Preparing Estate Tax Returns and Understanding and Using Trusts and a contributing author of Drafting Irrevocable Trusts in Massachusetts. He is a lecturer in law in the Graduate Tax Program at Boston University School of Law.Close
Jacqueline Patterson, CPA, JD
Buchanan & Patterson
Ms. Patterson specializes in tax, estate and financial transactions, with an emphasis on asset protection and... | Read More
Ms. Patterson specializes in tax, estate and financial transactions, with an emphasis on asset protection and succession planning. She advises grantors, fiduciaries and beneficiaries in matters involving the transfer, administration, investment and management of assets and is a consultant to attorneys and CPAs in fiduciary accounting, taxation and litigation. She has held Adjunct Faculty positions in the graduate tax programs at both USC and Golden Gate University.Close
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