Chair: Brad J. Richter, Esq., Partner, Fried, Frank, Harris, Shriver & Jacobson, New York, NY
REGISTRATION AND DISTRIBUTION OF MATERIALS
8:45 – 9 a.m.
INTRODUCTION AND OVERVIEW
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 the speaker discusses 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., Partner, Fox Rothschild, Princeton, NJ
- Melissa A. Terranova, Esq., Partner, Fox Rothschild, Princeton, NJ and Morristown, NJ
10:15 - 11:30 a.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 assists in understanding how to best navigate planning for real estate under long established and more recent rules, and includes planning tips and ideas to maximize use of the 20% pass through deduction, as well as an in-depth analysis of the impact of the rules on the "choice-of-entity" decision for real estate.
- Norman Lencz, Esq., Partner, Venable, Baltimore, MD
11:45 a.m. – 1 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 focuses on international reporting requirements and compliance relevant to US persons engaged in cross-border transactions. Foreign information returns 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
2 – 3:15 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 that are 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 are discussed. [CLE credits may be available for ethics and diversity and inclusion where applicable.]
- Joseph P. Scorese, Esq., Member, Sills Cummis & Gross., New York, NY, and Newark, NJ
- Paulina Mejia, Esq., National Fiduciary Counsel, Fiduciary Trust Company International, New York, NY
- Brad J. Richter, Esq., Partner, Fried Frank, Harris, Shriver & Jacobson, New York, NY
3:15 – 4:30 p.m.
DIVORCE - MINIMIZING IMPACT & MAXIMIZING LEVERAGE
Whether advising clients before, during or after marriage, professional advisors should be aware of important tools, techniques and other considerations in order to advantageously position their clients in the event of divorce. With the increasing overlap among professional disciplines, advisors have much to gain from having cross-disciplinary fluency. Topics include:
- Powerful new tax considerations;
- A hidden asset in prenuptial planning that could be worth millions;
- Asset protection trusts: A potentially powerful premarital option;
- “Quiet” Trusts, with the ability to restrict beneficiary access to trust information;
- Lifetime planning considerations;
- Documents that require immediate review in light of divorce;
- Significance of credit solutions in divorce;
- Attacking and defending trust assets in divorce;
- Compelling options to potentially change otherwise irrevocable trust terms;
- Key considerations regarding the use of life insurance; and
- Recent developments regarding stored genetic material.
Sharon L. Klein, EVP, President, Family Wealth, Eastern US Region, Head of National Divorce Advisory Practice, Wilmington Trust, NA, New York, NY
8:45 - 10 a.m.
CRT INTERESTS: SAVE, SELL OR SACK? AN ECONOMIC ANALYSIS
An evaluation of the three alternatives and which alternative is the most attractive for the individual holding the annuity interest or the unitrust interest of a Charitable Remainder Trust (CRT) depending on (i) the trust's classification as an annuity trust or a unitrust, (ii) the income tax character of the asset contributed to the trust, such as cash, an appreciated asset, or an asset with little or no built-in gain, (iii) the Section7520 rate if the trust is an annuity trust, and (iv) the nature of the income-producing assets currently held in the trust. This session and its materials demonstrate the circumstances (i) when an early termination is financially better than a sale of the lead interest to a third-party for cash, (ii) when a sale of the lead interest is better than an early termination, and (iii) when continuation of the trust can be financially more attractive. The materials explain the financial impact from the required use of the Section 7520 mortality tables that over value the charitable remainder interest. The materials use numerical examples to illustrate the financial impact for each alternative that allows one to communicate the results for each alternative to a client in an understandable manner.
- Jerome M. Hesch, Esq., Of Counsel, Meltzer, Lippe, Goldstein & Breitstone, Boca Raton, FL
10 - 11:15 a.m.
SUPERCHARGING TRUSTS: ADVANCED TECHNIQUES TO GIVE AN OCTANE BOOST
Once established, trusts can be powerful mechanisms for continuing to provide clients with additional tax benefits. "Supercharging" trusts - pushing more and more appreciation into one or more tax-free pots - can be accomplished in a number of ways This session explores several of those techniques, focusing on the preferred freeze partnership as a way to achieve multi-generational tax benefits for a family using leverage and a variety of configurations The session also touches upon various issues, pitfalls and planning opportunities that should be considered in connection with these structures.
- N. Todd Angkatavanich, Esq., Partner, McDermott, Will & Emery, New York, NY
11:30 a.m. - 12 45 p m.
BACK-END SLATS: STATE-SANCTIONED AND VALUABLE, OR FOOL'S GOLD?
This presentation explores the genesis of the "Back End SLAT," the associated potential transfer tax pitfalls and the preferred method for drafting a Back End SLAT. As 2026 quickly approaches, the SLAT once again becomes the dominant planning vehicle of choice for married couples As the basic exclusion amount has seemingly exponentially increased, wealthier spouses are becoming a bit more hesitant to engage in a SLAT for two reasons: divorce and the unanticipated death of the donee spouse These issues become relevant because, should either occur, the wealthier spouse would lose all access to the SLAT funds. To combat that risk, creative planners developed the "Back End SLAT" under which it is possible for the donor spouse to retain an interest in the SLAT if the donee spouse predeceases the donor spouse and, in some jurisdictions, if a divorce occurs. In 2022, Florida became the 10th jurisdiction to adopt a specific statute authorizing the Back End SLAT. Even if state law blesses the approach, does it really work to avoid estate taxation upon the death of the donor spouse? Therein lies the theme for this presentation.
- George D. Karibjanian, Esq., Member, Franklin Karibjanian & Law, PLLC, Boca Raton, FL & Washington, DC
1:45 - 3 pm.
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 focuses 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.
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 also includes a discussion of advanced planning applications with Section 2701, including Preferred Partnerships, Carried Interest Transfer Planning and Profits Interests.
- Eric M. Fischer, Esq., Counsel, Skadden, Arps, Slate, Meagher & Flom, New York, NY
- Materials: N. Todd Angkatavanich, Esq., Partner, McDermott, Will & Emery, New York, NY
Upon completion of this program, you will have moved beyond the basics of the taxation of trusts and estates and planning to more sophisticated planning opportunities, issues, techniques and pitfalls, such as
- Important aspects of US international tax and reporting obligations
- State income taxation of trusts and planning techniques
- Use of decanting and related tax, fiduciary and planning issues
- Exploring the changing face of diverse family situations for clients in the world of estate and trust planning
- Planning issues and opportunities in connection with Section 2701
- Trust design strategies that can achieve massive income tax benefits
- A deeper insight on estate planning trends, current best practices, and ways to best advise clients
Program Level: Update • Prerequisite: Knowledge of the taxation of trusts and estates