Are You Aware of the Income Tax Impact of Trusts
You Recommend or Set Up?
Do You Know What Actions to Advise Clients
to Take and Not to Take After a Trust is Established?
And Even If You Do, What’s the Effect of the New “ATRA” Rules?
Many of your clients (or prospective clients) have estate plans - - or you’ll recommend ones - - that provide for trusts to be set up, after their death, for their beneficiaries. Some clients also make or are advised to make gifts to irrevocable trusts during their lifetime. And some will die with probate estates.
Unfortunately, most estates planning professionals don’t know the rules for income taxation of trusts and estates - - and may be unwittingly getting their clients and themselves into a lot of trouble! And this problem has gotten worse with the resolution of the “fiscal cliff” and passage of the already effective American Taxpayer Relief ACT (ATRA).
For example, the income taxation of estates and trusts involves a totally unique concept known as “distributable net income” (or “DNI”). Plus, the deductions for fiduciary fees, charitable deductions and certain miscellaneous deductions (such as investment advisory fees, attorney/accountant fees) are treated quite differently for estates and trusts than for individual taxpayers.
However, with a decent understanding of the basic income tax rules, you can give more than adequate tax planning and advice for trusts and estates.
Join us and nationally renowned CPA and tax authority, Robert S. Keebler for a special 90-minute program, entitled “Taxation of Trusts and Estates After the New Tax Law”.
During this program, you will learn about:
- The general tax rules, including the effect of ATRA
- The different types of trusts for income tax purposes (e.g. simple, complex, grantor, charitable)
- The critical categorization of income (taxable income vs. fiduciary accounting income)
- The new Net Investment Income Tax (Medicare Surtax)
- Distributable net income (DNI) and how it works
- The “Tier” Rules
- The Separate Share Rule
- IRC 663(b) “65-Day” Rule
- IRC §691(c) Deduction for “Income in Respect to Decedent”
- How to treat excess deductions on termination
- Grantor trust rules and how they impact planning and return preparation
- How to handle special trusts like CRTs, QTIPs and IRA Beneficiary Trusts
- All in plain-English you can understand!