Trust Modification; Buy-Sell Agreements; Financing

Webinar

This webinar draws from Steve Gorin’s 1st quarter 2024 newsletter.

CCA 202352018 asserts that a beneficiary’s consent to a trust modification constitutes a gift. Additionally, it comments on a beneficiary’s failure to enforce rights as being tantamount to a gift. We will delve into the income and transfer tax implications associated with various methods of modifying trusts. Discussion will include an analysis of one of the regulations cited in the CCA and its impact on the scope of the assertion regarding failure to enforce rights. Finally, we will explore strategies for mitigating risks. The majority of our time will be dedicated to these topics.

Huffman v. Commissioner, T.C. Memo. 2024-12, determined that a buy-sell agreement failed to meet the comparability test outlined in IRC § 2703, resulting in a higher estate tax valuation. We will examine IRC § 2703 cases and planning considerations in light of this precedent.

We will also review recent cases pertaining to loans or split-dollar life insurance arrangements. The Tax Court’s treatment of advances as equity, a District Court’s ruling that loans to a fraudulent party did not incur theft losses, a separate District Court’s affirmation of a life insurance arrangement’s compliance with split-dollar regulations, and a taxpayer’s concession in a Tax Court case involving a reverse split-dollar arrangement will all be covered.

CLE
The live presentation of this webinar was approved for 1.5 hours of general CLE credit in California, Illinois, and Texas; 1.8 hours of general CLE credit in Missouri; and 1.5 hours of professional practice CLE credit in New York. Please visit the CLE Overview page to see how the CLE credit for this recorded webinar can be applied in CA, IL, MO, NY, & TX. 

If you are interested in receiving CA, IL, MO, NY, or TX CLE credit for watching the recorded presentation, you must register for the program by clicking here. If you are not interested in receiving CLE credit, you can watch the presentation by clicking the play button on the video.

Participants will only be emailed a Certificate of Attendance if the webinar is viewed in its entirety. If you were unable to view the webinar in its entirety, please contact webinarinquiries@thompsoncoburn.com to see if you are eligible to receive partial credit. 

If you do not receive your Certificate of Completion, please e-mail webinarinquiries@thompsoncoburn.com. 

Presenters:
Steve Gorin