Introduction

The Estate and Trust Taxation Workshop is designed for professionals seeking advanced knowledge and practical tools in the taxation of estates, trusts, and wealth transfer strategies. This intensive 5-day program focuses on complex aspects of estate tax planning, trust administration, and tax reporting in a world that is increasingly shaped by changing tax laws and global regulations. Participants will gain the expertise required to navigate trust taxation, develop effective wealth transfer strategies, and optimize tax outcomes for clients involved in estate planning and succession planning.

The workshop includes real-world case studies, hands-on exercises, and practical insights into how evolving tax rules affect trusts, estates, and wealth management. By the end of this program, professionals will be prepared to handle the most sophisticated challenges in estate and trust taxation.

Objectives

By the end of this workshop, participants will:

• Gain a comprehensive understanding of the taxation of estates and trusts, including the latest changes in federal estate tax laws and trust tax reporting requirements.
• Master the application of tax rules to estate planning and wealth transfer strategies.
• Understand the tax implications of complex trust structures and intergenerational wealth transfers.
• Learn effective strategies to minimize estate tax liability, manage generation-skipping tax (GST), and optimize trust administration.
• Develop proficiency in using trust taxation software and tools to automate tax reporting and compliance.
• Explore the tax treatment of charitable trusts, irrevocable trusts, and life insurance trusts.
• Learn the intricacies of estate tax returns (Form 706), fiduciary income tax returns (Form 1041), and generation-skipping transfer tax.

Who Should Attend?

This program is ideal for:

• Estate planners, trust officers, and wealth managers involved in trust administration and estate planning.
• Tax professionals, certified public accountants (CPAs), and tax attorneys who specialize in estate and trust taxation.
• Financial advisors, private bankers, and insurance professionals working with high-net-worth clients on estate and wealth management strategies.
• Trust administrators and fiduciaries responsible for tax reporting, trust compliance, and tax strategy within estates and trusts.
• Corporate counsel or general counsel responsible for tax issues related to estate planning and trust formation for private companies.
• Tax auditors focusing on tax compliance for estates and trusts.

Course Structure – Two Interactive Sessions Per Day

Day 1: Fundamentals of Estate and Trust Taxation

Session 1: Introduction to Estate and Trust Taxation

• Overview of estate tax rules and the taxation of estates under U.S. federal tax law (including recent legislative changes such as SECURE Act and American Rescue Plan).
• The role of trusts in estate planning: revocable trusts, irrevocable trusts, grantor trusts, and complex trusts.
• Key tax issues related to the taxation of estates: estate tax rates, exemptions, deductions, and taxable estate calculations.
• Key differences between estate tax and generation-skipping transfer tax (GST).
• Practical exercise: Calculating the taxable estate for a sample estate and determining the estate tax liability.

Session 2: Introduction to Trust Taxation

• Understanding the tax treatment of revocable and irrevocable trusts.
• Grantor trusts: Tax implications of grantor trust rules and the taxability of distributions.
• Fiduciary income tax returns (Form 1041): Completing a basic return for a trust.
• Key issues in trust administration, including distributions, income taxation, and deductions.
• Practical exercise: Completing a fiduciary income tax return (Form 1041) for a simple trust.

Day 2: Advanced Estate and Trust Taxation Issues

Session 3: Advanced Estate Tax Planning and Strategy

• How to minimize estate tax through effective wealth transfer strategies.
• Using estate freeze techniques such as grantor retained annuity trusts (GRATs), charitable remainder trusts (CRTs), and family limited partnerships (FLPs).
• Portability election: Maximizing the use of deceased spouse unused exclusion (DSUE).
• Planning for generation-skipping transfers and understanding the GST exemption.
• Practical exercise: Structuring a GRAT and charitable trust to minimize estate taxes.

Session 4: Complex Trusts and Special Trust Structures

• Understanding complex trusts, including discretionary trusts and accumulation trusts.
• Tax rules governing irrevocable trusts and life insurance trusts.
• The taxation of charitable trusts, including charitable lead trusts (CLTs) and charitable remainder trusts (CRTs).
• Trusts for minors and special needs trusts: Special rules and tax considerations.
• Practical exercise: Structuring a charitable trust and preparing a fiduciary tax return for an irrevocable trust.

Day 3: Tax Reporting and Compliance

Session 5: Estate Tax Reporting and Filings

• Completing the estate tax return (Form 706): deductions, credits, and calculating the taxable estate.
• Key estate tax forms: Understanding the Form 706 filing requirements for estates exceeding the exemption limit.
• Managing estate tax liability payments and navigating estate tax audits.
• Case study: Completing a Form 706 for a high-value estate and analyzing taxable estates.

Session 6: Trust Tax Reporting and Filing

• In-depth look at Form 1041: How to report income distributions, taxable income, and trust tax payments.
• The tax implications of distributions from complex trusts and discretionary trusts.
• Filing requirements for trusts with charitable distributions and non-grantor trusts.
• Practical exercise: Completing the Form 1041 for a discretionary trust with charitable donations.

Day 4: Taxation of Wealth Transfers and Generation-Skipping Transfers

Session 7: Wealth Transfer and Gift Taxation

• Gift tax basics: annual exclusions, lifetime gift tax exemptions, and the impact on estate tax.
• Exploring gift tax strategies for minimizing wealth transfer taxes.
• The gift tax return (Form 709) and split gifts: Key considerations and filing requirements.
• Practical exercise: Structuring a tax-efficient gift plan for high-net-worth individuals.

Session 8: Generation-Skipping Tax (GST) and Planning

• GST tax: Key rules, exemptions, and planning techniques for transferring wealth across generations.
• Minimizing GST tax exposure using dynasty trusts, GST-exempt trusts, and GST tax exclusions.
• The role of trustees in managing GST tax liabilities and compliance.
• Practical exercise: Structuring a GST-exempt trust and calculating GST tax exposure.

Day 5: Strategic Trust Administration and Charitable Planning

Session 9: Trust Administration and Fiduciary Responsibilities

• Understanding the trustee’s role in trust administration, from tax reporting to asset management and distributions.
• The legal and tax obligations of trustees, including fiduciary duties, tax filings, and conflict resolution.
• Special considerations for trusts with charitable beneficiaries and tax implications.
• Practical exercise: Administering a trust with charitable beneficiaries and completing related trust tax filings.

Session 10: Charitable Planning and Trusts

• Using charitable trusts for tax-efficient wealth transfer and charitable giving.
• Structuring charitable remainder trusts (CRTs) and charitable lead trusts (CLTs) to maximize tax benefits.
• Understanding the impact of charitable donations on estate tax and income tax liabilities.
• Case study: Creating a charitable trust strategy to meet both estate planning goals and philanthropic objectives.

Conclusion & Certification

At the conclusion of the Estate and Trust Taxation Workshop, participants will have the advanced skills and knowledge to advise clients on tax-efficient estate planning strategies, manage trust administration and wealth transfers, and ensure tax compliance in complex estate and trust scenarios.

• Certificate of Completion will be awarded to participants who successfully complete the workshop and demonstrate proficiency in estate and trust taxation.