Current Issues in Estate Planning

This session will focus on recent legislative and regulatory changes in the estate planning environment. Given the increase in the estate, gift, and generation skipping transfer tax exemption amount, and the indexing of that amount since 2012, fewer individuals will need to focus on the traditional tax-planning approach to estate planning. The session will introduce planning issues associated with creating and preserving basis to minimize income tax consequences for beneficiaries of small and medium estates. Issues associated with the portability of the estate tax exemption, and planning issues that advisors will face in larger estates, will be discussed as well. In August 2016, the IRS proposed new regulations to Sec. 2704 dealing with the impact of lapsing and liquidation rights on the value of business interests transferred to family members. An overview of those proposed regulations, as well as the planning issues the new regulations pose on the use of valuation discounts in estate planning will be discussed. Finally, in light of the current state of flux in the estate planning environment due to the 2016 Presidential election, a brief overview of the candidates proposals regarding estate taxation and planning will be explored.


Objectives:
• Understand the planning tools to preserve and create basis for estates that fall under the applicable credit amount.

• Understand the advantages and limitations of the estate tax exemption portability rules, and how those rules can be used for the benefit of clients.

• Understand the impact of the Proposed Sec. 2704 Regulations on valuation discounts used in estate planning, and how clients can avoid the harsh consequences proposed by these regulations.