Interested in training for your team? Click here to learn more

Strategic Trusts, IRC Sec. 831b Captives, ESOPs: Saving Income, Estate and GST Tax

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, January 8, 2020

Recorded event now available

or call 1-800-926-7926

This course will explore often overlooked opportunities to implement now to help clients mitigate income and transfer taxes in 2020 and future years. Our speaker will discuss using strategic trusts, IRC Sec. 831b Captives, Employee Stock Ownership Plans (ESOPs), and other tax-saving techniques in light of economic trends and the pending sunset of the temporary estate exemption.


Many clients use a special trust strategy that allows them to lower income, estate, gift, and GST taxes while also allowing the client to operate as both trustee and beneficiary to access, use and distribute trust assets for the client’s health, education maintenance, and support (“HEMS), a tax safe harbor.

The new expansive interpretation of IRC Sec. 2036(a)(2), by all Tax Court judges, first published in the Powell case, has raised significant new risks of unexpected estate tax for clients with family entities such as LLCs and partnerships. This trust can help clients avoid that risk if they act early enough.

IRS said on multiple occasions that micro captive insurance companies (that allow substantial tax savings provided by Congress) are legal but warned that some promoters have sold defective captives. Almost every public company has at least one captive to reduce insurance costs. Knowing the difference between micros that do and do not comply with Sec. 831b is important when a client asks you about a captive.

Establishing an ESOP can help business owners sell their business for a higher price and with better and safer terms benefitting both the employees and the owner. Many owners may defer or avoid capital gains tax while allowing employees to share in the financial success of the company. Knowing when to use a C corporation and when to use an S corporation with an ESOP is important to maximize tax savings.

Listen as our expert discusses valuable income and transfer tax strategies to reduce clients’ overall tax burden.



  1. Overview
  2. Trusts
    1. The Wealth Building and Preservation Trust
    2. Ways to structure and use trusts to save income tax
    3. A special trust to mitigate risks of IRC Sec. 2036(a)(2)
  3. Micro captive insurance companies
  4. ESOPs
  5. Additional tax-saving techniques


The panel will review these and other critical issues:

  • Utilizing captive insurance companies to lower taxes
  • Establishing an ESOP to sell a business and avoid capital gains
  • Using special trusts for tax savings
  • Mitigating likelihood of inclusion under 2036(a)(2)


Weiner, Leonard
Leonard Weiner, J.D., C.P.A., M.B.A, AEPĀ®

Leonard Weiner Law

Mr. Weiner is certified by the Texas Board of Legal Specialization in (1) Tax Law and (2) Estate Planning and Probate...  |  Read More

Access Anytime, Anywhere

CPE credit is not available on downloads.