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Drafting Income Tax Efficient Trusts for Grantors and Beneficiaries

Webinar Recorded: December 13, 2018
Presented by Jeffrey Williamson, Esq.
Duration: 57 minutes

Estate planning and elder law attorneys are tasked with carefully drafting trusts that memorialize their client’s wishes. Practitioners should also draft trusts with tax efficiency in mind. With the estate tax exemption being what it is today (and what it will be for the foreseeable future), estate tax savings, while important, may not be as critical as it was in years past. Instead, practitioners should be focused on drafting trusts that include other tax savings strategies, including income taxes and capital gains.

This joint WealthCounsel-ElderCounsel webinar begins with a brief overview of basis planning: what is it and why is it important when drafting a trust. Next, we will discuss income tax considerations for current distributees of a trust.  Finally, we will discuss income allocation, including UPIA considerations.

CLE: 1 hour
1.0 CLE (California Board of Legal Specialization – Estate Planning)
1.0 CFP credit pending (National CFP Board)

Practitioners will learn:

  • What is “basis” and why it is important when drafting tax efficient trusts
  • The difference between incomplete and complete gifts and the effect either has on income taxation of trusts
  • Why grantor trusts are used as an income tax efficiency strategy
  • What issues should be considered when drafting provisions for current trust distributees
  • What is distributable net income (DNI) and how can it be used as a tax efficiency strategy
  • How the Uniform Principal and Income Act (UPIA), or other state-specific statutes, are critical in determining a trustee’s income allocation strategies

 

Program Knowledge Level: Intermediate
Delivery Method: Group Internet-Based
Recommended CPE Credit: 1.0 credit
Field of Study: Taxation
Prerequisites: JD
Review Date: 11/30/2018

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