Advanced Trusts & Estates Agenda

Chair: Brad J. Richter, Esq., Partner, Fried, Frank, Harris, Shriver & Jacobson, New York, NY


Day 1


8:00 a.m.

REGISTRATION AND DISTRIBUTION OF MATERIALS


8:30 a.m.

WELCOME REMARKS

  • Kathleen Costello, CMP, Assistant Director, NYU School of Professional Studies, New York, NY

8:45 – 9 a.m.

INTRODUCTION AND OVERVIEW

  • Brad J. Richter, Esq., Partner, Fried, Frank, Harris, Shriver & Jacobson, New York, NY

9 a.m. – 10:15 a.m.

PLANNING ISSUES AND PROBLEMS WITH RESPECT TO DECANTING TRUSTS

Decanting is a powerful option in an estate planner’s toolbox. Under the right circumstances, it can be used to modify an irrevocable trust to address changes in applicable law or a beneficiary’s circumstances, or to make administrative changes, such changing the appointment and succession of trustees. In this session we will discuss when decanting may be appropriate, state laws governing decanting, tax issues, and alternative methods for modification when decanting won’t work.

  • Wendy Wolff Herbert, Esq., Fox Rothschild, Princeton, NJ

10:15 – 11:30 a.m.

SUMMER (TAX) FUN IN THE SUN WITH 2701

This program discusses the technical provisions of Section 2701 including historical context and various planning pitfalls. It will also include a discussion of advanced planning applications with Section 2701, including Preferred Partnerships, Carried Interest Transfer Planning and Profits Interests.

  • Adam K. Sherman, Esq., Partner, McDermott, Will & Emery, Chicago IL
  • Scott M. Sambur, Esq., Partner, Seward & Kissel, New York, NY
  • Materials: N. Todd Angkatavanich, Principal, Ernst & Young, Hartford CT

11:30 – 11:45 a.m.

REFRESHMENT BREAK


11:45 a.m. – 1 p.m.

ADVANCED PLANNING FOR REAL ESTATE

Changes in the law in recent years have had a particularly significant impact on owners of real estate. While the new rules certainly create many opportunities for tax savings, careful planning is necessary to ensure that owners of real estate take maximum advantage of these new opportunities. While there have been clarifications over the years, many unanswered questions as to how the rules will apply still remain. This presentation will assist in understanding how to best navigate planning for real estate under long-established and more recent rules, and will include planning tips and ideas to maximize use of the new 20% pass-through deduction, as well as an in-depth analysis of the impact of the newer rules on the “choice-of-entity” decision for real estate.

  • Norman Lencz, Esq., Partner, Venable, Baltimore, MD

1– 2 p.m.

LUNCH RECESS


2 – 3:15 p.m.

STATE INCOME TAXATION OF TRUSTS

This topic has come to the forefront of wealth transfer planning with a bevy of cases that have changed the dynamic as to how States can – and cannot – tax trusts. Numerous trusts are paying income taxes that may not be required to do so; others could avoid or reduce State income tax burden with simple changes; and still others are paying taxes to multiple States for no reason in certain circumstances. This discussion will focus on current law and critical concepts to understand how trusts can better their State income tax exposure with significant corresponding savings.

  • Richard H. Greenberg, Esq., CPA, Member, Greenberg & Shulman, Attorneys at Law, Woodbridge, NJ

3:15 – 4:30 p.m.

DIVORCE – MINIMIZING IMPACT & MAXIMIZING LEVERAGE

This session covers important tools, techniques and other considerations advisors need to know to advantageously position their clients in the event of divorce, whether counselling clients before, during or after marriage. With the increasing overlap among different professional disciplines, there is much to be gained from having cross-disciplinary fluency, particularly in light of recent tax law changes in the divorce context, which will be discussed.

  • Sharon L. Klein, EVP, President, Family Wealth, Eastern U.S. Region, Head of National Divorce Advisory Practice, Wilmington Trust, N.A., New York, NY

Day 2


8:30 - 9:45 a.m.

“THE BAKER’S DOZEN: 13 THINGS THAT YOU MAY NOT KNOW ABOUT PREPARING A FEDERAL ESTATE TAX RETURN”

And now, some advanced tips, with humor: Alas, poor 706. We knew you well. Or did we? Don’t write off the 706 just yet – it’s actually alive and well and while other planning techniques and practice areas may come and go, the Federal estate tax return will be part of our practice for years to come. When preparing a 706, however, often little mistakes can end up leading to much bigger inquiries. This presentation will review some little known, but important, 706 preparation pointers that will help you properly prepare basic and more advanced portions of the return.

  • George D. Karibjanian, Esq., Member, Franklin Karibjanian & Law, PLLC, Boca Raton, FL and Washington, DC

9:45 – 11 a.m.

PREFERRED PARTNERSHIPS: PRACTICAL USES FOR ENCUMBERED REAL ESTATE

Because lifetime sales of encumbered real estate can result in reporting taxable gain greater than the after-tax cash from the sale, there is a reluctance to sell while the owner is living. Instead, the owner will wait until encumbered real estate can pass at death when, via inclusion in the gross estate, the entire built-in gain, including the phantom gain, can be eliminated, but an estate freeze is not available. This presentation explores how the preferred partnership can eliminate the entire built-in gain, including the phantom gain, and still implement an estate tax freeze. If a lifetime sale is contemplated, we examine how to defer reporting the built-in gain, including the phantom gain. Although reporting the gain cannot be eliminated, the ability to postpone the reporting of the gain results in significant income tax benefits. We also explore techniques that can be used for income tax deferral.

  • Jerome M. Hesch, Esq., Of Counsel, Meltzer, Lippe, Goldstein & Breitstone, Miami, FL

11 – 11:15 a.m.

Refreshment Break


11:15 a.m. – 12:15 p.m.

I WANT A DO-OVER: 9100 RELIEF FOR LATE TAX ELECTIONS

The Internal Revenue Code and the voluminous Treasury Regulations contain hundreds of elections and other provisions falling within the broad ambit of "applications for relief in respect of tax." Given the complexity of some of these elections, the frequent absence of relevant authority for their application, and the confusion often found in the applicable forms on which the elections and applications for relief must be made, it is little wonder that the failure to make required elections in a timely and accurate manner is becoming more and more common. Under certain circumstances, so-called "9100 Relief' allows extensions of time within which to make such elections and applications for relief in respect of tax.

  • Douglas L. Siegler, Esq., Partner, Venable, Washington, DC

12:15 – 1:15 p.m.

LUNCH RECESS


1:15 – 3 p.m.

ETHICS/DIVERSITY AND INCLUSION SESSION: VIVA LA FAMIGLIA! ADVISING DIVERSE CLIENTS AND THE FAMILIES IN A CHANGING ESTATE PLANNING WORLD

Estate planning practitioners now face a myriad of subtle considerations when counselling clients. Attorneys in this practice area who are insensitive to a client’s unique family configuration do so at their peril. This panel presentation highlights the changing face of diverse family situations for clients in the world of estate and trust planning. Specific circumstances to be explored include age diversity between spouses, providing for children born through assisted reproductive technology (ART) or adoption, planning for LGBTQ spouses, partners and children, and special considerations involving geographic, cultural and religious diversity. Practical tips in understanding and relating to a client’s individual needs and desires and proposing and implementing flexible and dynamic solutions will be discussed. [CLE credits available for ethics and diversity and inclusion.]

  • Joseph P. Scorese, Esq., Member, Sills Cummis & Gross P.C., New York, NY, and Newark, NJ
  • Paulina Mejia, Esq., Regional Managing Director and Trust Counsel, Fiduciary Trust Company International, New York, NY
  • Brad J. Richter, Esq., Partner, Fried Frank, Harris, Shriver & Jacobson, New York, NY

3 – 3:15 p.m.

Refreshment Break


3:15 – 4:30 p.m.

REPORTING FOR FOREIGN ASSETS AND ACTIVITIES BY US TAXPAYERS INCLUDING TRUSTS AND ESTATES

Foreign assets and activities present a minefield for US Taxpayers. Discussion will focus on international reporting requirements and compliance relevant to US persons engaged in cross-border transactions. Foreign information returns to be discussed include Forms 926, 5471, 5472, 3520, 3520-A, 8858, 8865, 8621, 8938 and FinCEN Form 114 (FBAR).

  • Eduardo S. Chung, Esq., Principal, Mazars USA, New York, NY
  • Timothy Evans, Esq., Principal, Mazars USA, New York, NY

4:30 p.m.

CONFERENCE CONCLUDES