Updating Estate Plans After Tax Reform: Maximizing Basis and Minimizing Income Taxes

Note: CLE credit is not offered on this program

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


Conducted on Tuesday, May 21, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will explain the new tax law's impact on existing estate plans. The panel will describe the potential dangers of old estate planning techniques and offer suggestions for minimizing overall income and estate taxes paid in light of the recent tax overhaul.

Description

With the latest tax reforms as a catalyst, tax practitioners and taxpayers must take a fresh look at estate plans. The exemption has doubled; we now have portability, and notably, fewer taxpayers are required to file an estate return. Basis rules have not changed. Leaving assets in your estate (or putting them back) could afford significant tax savings. Then again, this all goes away in 2025.

In 2013 there were 2,596,993 million deaths; 11,309 estate returns were filed; 4,699 of these were taxable estates. Estimates for 2018 indicate about 4,000 estate returns to be filed with approximately 1,900 of these being taxable. With the 2018 exemption at $11,180,000 and portability doubling this to $22,360,000, for those with combined gross estates under $22 million the focus shifts from avoiding estate tax to stepping-up the basis of assets and minimizing income tax on the appreciation.

A non-taxable federal estate, however, does not ensure exemption from state tax. In New York, for example, income $1 more than the $5.74 million threshold in 2019 can trigger tax on the entire estate, not just the amount over the exclusion. Tax advisers should revisit estate plans, explore new planning opportunities, and modify existing wills, trusts and FLPs as necessary.

Listen as the panel discusses common estate planning techniques that need to be reviewed, how to implement changes needed, and steps to take to maximize the value of the client's estate, after tax, over the next seven years.

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Outline

  1. Estate tax before tax reform
  2. How tax reform changes estate planning
  3. Reviewing the existing estate plan
    1. Wills and trusts
    2. Valuations and discounts
  4. Estate inclusion and basis step-ups
  5. State tax considerations
  6. Best practices to ensure estate plans are up-to-date

Benefits

The panel will review these and other crucial issues:

  • Impact of the tax act on existing formula allocations
  • Considerations for existing trusts and FLPs
  • Preserving basis step-up
  • State tax considerations
  • What happens when legislation sunsets in 2025?

Faculty

McCall, Jennifer
Jennifer Jordan McCall

Partner
Pillsbury Winthrop Shaw Pittman

Ms. McCall chairs the Estates, Trusts & Tax Planning practice and is a leading authority on U.S. and international...  |  Read More

Rittenberg, Leon
Leon H. Rittenberg, III

Atty
Baldwin Haspel Burke & Mayer

Mr. Rittenberg's practice focuses on serving the needs of small and mid-sized businesses and their owners,...  |  Read More

Weintraub, William
William M. Weintraub

Partner
Elkins Kalt Weintraub Reuben Gartside

Mr. Weintraub specializes in estate planning, transactional tax planning, and tax controversies. His wealth transfer...  |  Read More

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