S-Corp Trusts in Estate Planning: Drafting Grantor, Testamentary, Qualified Sub S and Electing Small Business Trusts

Navigating Interest Expense and NII Issues and Overcoming Challenges to Maintain Tax Attributes

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


Conducted on Tuesday, July 29, 2014

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will guide estate planning counsel in overcoming complex tax planning challenges with the use of S-corporations. The experienced panelists will discuss drafting techniques for grantor, testamentary, qualified subchapter S trusts (QSSTs) and electing small business trusts (ESBTs), as well as the latest IRS developments.

Description

S-corporations are bound by very specific rules that can significantly affect an estate plan. Estate planning counsel must be able to implement effective planning techniques while maintaining the corporation’s all-important S-election, which can prove to be a delicate endeavor. Termination of the S status would be disastrous to clients.  

Using trusts with S-corporations has many tax advantages. However, only certain trusts may own S-corporation stock. Choosing which trust to use requires an assessment of the grantor’s planning needs and the potential tax consequences. 

The IRS recently addressed issues concerning S-corporation trusts, including the tax treatment of interest expense incurred by a QSST. Counsel must also be mindful of net investment income tax consequences when the trustee of the S corporation does not materially participate in the operation of the business.

Listen as our distinguished panel provides techniques for drafting the various types of S corporation trusts, including grantor, testamentary, QSSTs and ESBTs. The panelists will discuss the impact of latest IRS developments, including guidance regarding interest expense and the implications of the net investment income tax.

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Outline

  1. S-corporation trusts
    1. Grantor trusts
    2. Testamentary trusts
    3. Qualified subchapter S trusts
    4. Electing small business trusts
  2. Applicability of net investment income tax
  3. Interest expense

Benefits

The panel will review these and other key questions:

  • What S-corporation trust drafting techniques should be implemented to maintain advantageous tax attributes?
  • What considerations should be made when evaluating and selecting trusts that are allowed to own S-corporation stock?
  • How does the net investment tax affect S-corporation trusts?

Faculty

Langdon T. Owen, Jr.
Langdon T. Owen, Jr.

Shareholder
Parsons Kinghorn Harris

Mr. Owen provides tax, business, and estate planning advice, structures various forms of business organizations, and...  |  Read More

Louis Vlahos
Louis Vlahos

Partner
Farrell Fritz

Mr. Vlahos is the firm’s lead tax attorney. He advises clients in connection with numerous matters including but...  |  Read More

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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:

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