Trusts Serving as Grantors to Other Trusts: Drafting Multi-Trust Structures for Optimal Tax Results

Essential language in Grantor and Grantee Trusts

A live 90-minute CLE/CPE webinar with interactive Q&A


Tuesday, October 3, 2017 (in 11 days)
1:00pm-2:30pm EDT, 10:00am-11:30am PDT


This CLE/CPE webinar will provide estate planners with a practical guide to the tax consequences of structuring trusts that own other trusts. The panel will discuss critical drafting language in both the grantor and grantee trust, and outline potential tax saving opportunities and risks in multi-trust structures.

Description

In Letter Ruling 201633021, the IRS recently took the (somewhat surprising) position that a trust may serve as a grantor over another trust, even if the two trusts have different tax attributes. While not binding, the Service’s position creates interesting opportunities for estate planners.

The PLR addressed a scenario in which a trust (Trust I) established by a decedent transferred property to a new, second trust (Trust II), after the death of the original grantor. Trust I retained certain powers over Trust II which would create grantor trust status if retained by an individual grantor.

The Service held that Trust I could be a grantor as to Trust II based on Trust I’s retained powers, applying the rules of §671 et seq.

Our panel will discuss this ruling and other code provisions and regulations that can apply when an existing trust forms and funds a new trust.  The panel will discuss critical drafting language in both the grantor and grantee trust and outline potential tax saving opportunities and risks in multi-trust structures.

Outline

  1. Grantor Trust Rules of Sections 671-678
  2. Options for structuring secondary trusts
    1. Original grantor as grantor of Trust II
    2. Beneficiary as a grantor of Trust II
    3. Trust II as a complex trust
  3. Critical drafting language to accomplish intended status
  4. Letter Ruling 201633021: Trust I as grantor of Trust II
  5. Planning opportunities and risks

Benefits

The panel will review these and other key issues:

  • Various tax results that are possible when one trust establishes and funds a new trust
  • Recommended provisions to accomplish the desired tax results
  • Potential risks of using trusts as grantors to other trusts
  • Possible impact of PLR 201633021

Learning Objectives

After completing this course, you will be able to:

  • Identify the tax status of a trust created by another trust
  • Identify language in trust documents that creates certain tax results
  • Analyze the pros and cons of treating a trust as grantor of another trust

Faculty

Andrew S. Katzenberg, Senior Counsel
Kleinberg Kaplan Wolff & Cohen, New York

Mr. Katzenberg focuses primarily on wealth transfer planning and preservation, multi-generational planning, estate and trust administration, nonprofit and tax exempt organizations and charitable giving. He works with a variety of high net-worth clients and also represents clients in all phases of forming and managing nonprofit and tax exempt organizations (including public charities, private foundations and private operating foundations) and acquiring and retaining their tax exempt status. He authored numerous articles related to his field and is a frequent contributor to the New York State Bar Association’s Trusts and Estates Law Section Newsletter. 

Ruth Mattson, Principal
Bove & Langa, Boston

Ms. Mattson advises trustees and personal representatives with the administration of trusts and estates, including local and multinational trusts and estates. She focuses on international planning, including planning for overseas assets, forming offshore asset protection trusts, planning for a spouse who is not a U.S. citizen, and helping U.S. beneficiaries plan to receive gifts and inheritances from abroad. For clients with unreported foreign assets, she coordinates with accountants to help bring the clients into compliance with their FBAR and other reporting requirements. 


Live Webinar

Live Webinar $297.00

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This webinar is eligible for at least 1.5 general CLE credits.

CLE credits are not available for PR.

*In KS, OH, PA, for more than 1 attendee on the connection you must contact Strafford CLE via email or call 1-800-926-7926 ext. 35 prior to the program for special instructions.


CPE on Live Event

Continuing Professional Education credit processing is available for an additional fee per person. You may register for CPE credit processing at any time before or after the program. To qualify for CPE you may not listen via the telephone.

This program is eligible for 1.5 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: None.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: Group-Internet (via computer).
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex trusts and tax schedules; supervisory authority over other attorneys/estate planners. Knowledge and understanding of intentionally defective grantor trust structures and rules. Familiarity with structuring sales transactions to trusts; familiarity with estate planning and trust issues specifically including gain recognition, acceleration and other trust provisions, and asset basis.

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


Recordings

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*Only available for attorneys admitted for more than two years. For OH CLE credits, only programs recorded within the current calendar year are eligible - contact the CLE department for verification.

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Recorded Event

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Live Webinar & Audio Download $394.00

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Live Webinar & DVD $394.00 plus $9.45 S&H

DVD (Slide Presentation with Audio) Only $97.00 with Registration/DVD Combo


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Anderson Hunter Law Firm

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Estate Planning Advisory Board

Gary D. Altman

Principal and Founder

Altman & Assoc.

Brian M. Annino

Partner

Annino Law Firm

Richard S. Franklin

Member

Franklin Karibjanian & Law

J. Leigh Griffith

Partner and Practice Group Leader - Tax

Waller Lansden Dortch & Davis

L. Paul Hood, Jr.

Consultant, Speaker and Author

The University of Toledo Foundation

Denise L. Iocco

Partner

Windels Marx Lane & Mittendorf

Donna J. Jackson

Atty

Donna J. Jackson, Attorney at Law

Salvatore J. LaMendola

Member

Giarmarco Mullins & Horton

Edwin P. Morrow, III, Esq.

Senior Wealth Specialist

Key Private Bank Wealth Advisory Services

Scott K. Tippett

Atty

The Tippett Law Firm

Susan M. von Herrmann

Partner

Perkins Coie

or call 1-800-926-7926

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