S Corp Issues for Trusts and Estates: Qualified Shareholders, Key Tax Rules, Multiple Trusts, QSST, ESBT

Note: CPE credit is not offered on this program

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, July 1, 2020

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide trusts and estates counsel guidance on critical issues relating to S corporations in estate planning. The panel will discuss principal tax rules relating to S corporations that significantly impact estate planning and offer techniques for the use of multiple grantor trusts, S corp trusts, and other items to avoid unintended tax liability.

Description

S corporations are subject to stringent rules with limitations on who or what can be a shareholder of an S corporation. For estate planning purposes, trusts and estates counsel must recognize the impact of eligibility rules for S corps, key tax provisions, and reporting and administrative challenges to implement methods to minimize tax liability.

Succession, shareholder agreements, valuation, post-mortem planning, and basis considerations are some of the challenges of developing an estate plan for owners of S corporations. The 2017 tax reform law created significant opportunities, along with some additional complexity, for estate planners and advisers. Clients with ownership interests in an S corporation are less focused on reducing estate taxes and more focused on avoiding probate and reducing future capital gains tax through obtaining a basis step-up.

Estate planning counsel must be adept at applying key tax provisions to current and future estate plans involving S corporations. For existing ESBTs, trusts and estates counsel should determine whether the trust document allows for realignment of beneficiaries to enable use of a QSST or, in the absence of this power, whether a modification of the original trust is appropriate.

Listen as our panel provides a practical guide to the challenges and opportunities of S corporation ownership interests for trusts and estates. The panel will also offer techniques for the use of multiple grantor trusts, s corp trusts, and other items to minimize taxes.

READ MORE

Outline

  1. Qualified shareholders and eligibility rules for S corps
  2. Challenges of S corp ownership interests in estate planning
  3. Evaluating current S corporation trust structures to see if they still achieve optimal tax benefits
  4. Application of Section 199A and the 20% deduction on qualified pass-through business income
  5. Transfers of S corp interests
  6. Navigating reporting and administrative issues

Benefits

The panel will review these and other key issues:

  • Critical guidance on qualified shareholders of S corporations for trusts and estates counsel
  • Principal challenges of S corp ownership interests in estate planning and methods to overcome them
  • Identifying issues in current S corporation trust structures and making modifications for optimal tax benefits
  • The application of the 20% deduction on qualified pass-through business income
  • Current differences in tax treatment between an ESBT and a QSST holding S corporation stock
  • Essential considerations for transfers of S corporation interests

Faculty

Bartlett, Stefania
Stefania L. Bartlett

Counsel
Cummings & Lockwood

Ms. Bartlett is Counsel in Cummings & Lockwood's Private Clients Group and is based in the Stamford office. She...  |  Read More

Santoro, Cara
Cara Howe Santoro

Attorney
Cummings & Lockwood

Ms. Santoro focuses her practice on advising businesses, nonprofit organizations, and individuals on a variety of...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

48 hours after event

$297

Download

48 hours after event

$297