Docoding Trusts and Wills: Provisions for PFP Practitioners

Overview

Join us for a PFP Section webinar exploring the world of trusts. Experts Laura Hinson, CPA, and Natalie M. Perry, CPA, JD, will guide you through why trusts are created, how they function, and key tax considerations. Gain insights into trust roles, types, and complexities to enhance your financial planning expertise.

Topics covered:

• The big picture: Understand why trusts are created and how they’re used, including revocable trusts, ILITs, GRATs, SLATs, and more. Explore bespoke documents tailored to taxpayer needs.
• Roles in a trust: Overview of key roles, including grantor, trustee, beneficiary, and protector.
• Income tax concerns: Dive into grantor trusts, provisions, sample language, non-grantor trusts, simple versus complex trusts, Section 678, and state taxation.
• Gift tax considerations: Learn about withdrawal rights, gift splitting, spousal beneficiary complications, and the 5x5 power.
• GST tax considerations: Explore GST tax intent, Section 2632(c), and election strategies.
• Estate tax considerations: Understand string provisions and tax apportionment.
• Trustee powers: Gain insights into trustee authorities and responsibilities.
• Irrevocability: Assess whether irrevocable really means irrevocable, including potential decanting and modifications.

Prerequisites

Basic knowledge of financial planning, retirement planning, estate planning, tax planning and investment planning.

Objectives

• Apply the various components of a trust agreement.
• Analyze trust provisions that affect income taxation.
• Determine trust provisions that affect gift, estate and GST tax reporting.
• Differentiate provisions that allow for flexibility in trust administration.

Highlights

• Planning concerns: Understand why trusts are needed and how they can be used in your client's financial plans.
• Income tax concerns: This topic will cover grantor trusts, including provisions and sample language, as well as non-grantor trusts, simple versus complex trusts, Section 678 concerns and state taxation.
• Gift tax concerns: This topic will delve into withdrawal rights with examples, gift splitting, complications with spousal beneficiaries and the 5x5 power.