Practitioners are brought up-to-date information on tax issues affecting estate planning and business issues. A major emphasis of this mini-course is practical estate planning solutions that are cost-effective. Devised to reduce or eliminate estate problems and death taxes, this comprehensive guide examines wills, trusts, gifts, insurance, private annuities, and other general estate planning tools. The planning issues and problems that arise from owning a business interest are also addressed. As a result of studying the assigned materials, you should be able to meet the objectives listed below.
ASSIGNMENT
At the start of the materials, participants should identify the following topics for study:
* Unlimited marital deduction
* Simple will
* Types of trusts
* Charitable trusts
* Family documents
* Private annuities
* Business valuation
* Redemptions
* Lifetime dispositions
* Installment payment of federal estate taxes
Learning Objectives
After reading the materials, participants will be able to:
1. Identify the unlimited marital deduction specifying its effect on the gross estate evaluation and the impact of stepped-up basis as they affect survivors and heirs, and recognize the benefits of establishing even a simple will and its control over certain assets.
2. Specify the primary ways to dispose of assets using trusts and annuities including the importance of family documents to manage assets.
3. Recognize the starting point used to value a businesss tangible assets, cite the R.R. 59-60 business valuation factors and the steps in R.R. 68-609s valuation formula for intangible assets and goodwill stating the effect of both rulings on the total value of a business, determine the adjustment caused by minority interests in a closely held business and their impact on final evaluation.
4. Identify ways to dispose of a business interest before death to family members while avoiding the provisions of the constructive ownership rules.
5. Recognize deferred compensation agreements as a valuable estate planning tool and identify when to recommend the option of paying federal estate taxes in installments indicating the basis of the election and its eligibility requirements.