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Cannon Estate Planning Lunch & Learn
The monthly education series from the Cannon Financial Institute is offered free by the Oklahoma City Community Foundation and provides attorneys, financial planners, CPAs, trust officers and other estate planning professionals an opportunity to connect and collaborate about current wealth management and estate planning topics, while earning continuing education credits.
Topics to be covered in this year-long series are listed in the table below. To learn more about a specific topic, just click on the link. Learn more details about registration and location below.► Feb: 21: Post-Mortem Tax Election Heaven
A fiduciary faces an intimidating multitude of tax elections – particularly in the context of handling a decedent’s estate or post-death revocable trust. It is imperative for a fiduciary to possess the requisite skill to analyze the situation and implement an appropriate tax plan. During this session, we will discuss and analyze selected tax elections, including:
- Election to treat post-death revocable trust as part of the estate (IRC § 645)
- Fiscal year election (IRC § 441)
- Sixty-five day rule election (IRC § 663(b))
- Election to recognize gain or loss on the distribution of property (IRC § 643(e))
- QSST election (IRC § 1361(d)(2)) and ESBT election (IRC § 1361(e)(3))
The ultimate purpose of all trusts is to provide financial benefits to those fortunate souls who are the beneficiaries. There is almost an infinite number of ways by which those benefits may be transmitted, each with its own direct dispositive and tax consequences. Depending on a beneficiary’s circumstances, the most appropriate means for making distributions to him or her may be quite simple or strikingly complex. In this program, we will explore:
- Mandatory distributions
- Discretionary distribution schemes having broad standards and narrow standards
- Benchmarks for distributions including income, principal, unitrust amounts and annuities
- Loans to beneficiaries
To the extent our estate planning clients care anymore about planning to reduce taxes to be borne by their survivors, it’s all about income tax. Specifically, it’s about avoiding the compressed income tax brackets and high income tax rates of estates and trusts and achieving a basis step-up for as many assets, and as frequently as possible. During this program, we will look at:
- Refined uses of the Clayton QTIP structure
- Making distributions of ordinary income and capital gain to carry out DNI
- Ways to dodge the net investment income tax
- Using powers of appointment and other strategies to accomplish basis step-up
It is possible to have a superb estate plan in concept, including state-of-the-art estate planning documents, only to have defective fiduciary administration cause components of the plan to short circuit or, in some cases, cause the whole plan to explode in flames. The results may range from loss of expected tax status or benefits to diversion of trust assets. In this session, we will examine the importance of:
- Following governing instrument mandates to the letter
- Exercising dispositive and investment discretion with care and sensitivity
- Designating fiduciaries with expertise, experience and integrity
- A Trustee’s developing cooperative and informative relationships with beneficiaries
It goes without saying that an estate planning professional must provide competent services to the client. Confronted with an ever-changing legal and regulatory landscape, the estate planner must be vigilant not to allow the quality of his or her representation of clients to deteriorate. Given the plethora of currently available estate planning and post-mortem planning options, the potential for making mistakes may be greater than ever. In this teleconference, we will consider:
- What constitutes malpractice?
- The interrelationship of ethics rules violations and malpractice claims
- The potential for liability to non-clients
- Estate planning malpractice hazard zones
What’s your user name and password? If you had asked your parents that question, they would have had no idea what you were talking about. Today, most of us (and our clients) have a pervasive online presence in numerous “places” in cyberspace and in a variety of ways as active participants and passive observers, along with numerous user names and passwords. During this teleconference, we will discuss:
- What are digital assets?
- Contractual provisions imposed by electronic services providers
- Estate planning document provisions to facilitate gaining access to and handling of digital assets
- Impact of applicable laws including the Revised Uniform Fiduciary Access to Digital Assets Act
Largely as a result of the unlimited marital deduction, historically high (and still climbing) estate tax exemptions and portability, only a tiny fraction of Americans need to have any concern about estate tax. What do we, as estate planning professionals, need to do to serve everyone else? What are the contemporary estate planning concerns and objectives of the vast majority of the populace? During this teleconference, we will discuss:
- Designing estate plans that are both effective and practical
- Balancing the use of trusts and outright distributions
- Using special purpose trusts in the right situations
- Skillfully addressing all dispositive and fiduciary appointment contingencies
A huge majority of American businesses are family-owned, yet only a distinct minority of these companies is successfully transitioned into the second generation, and only half of those make it intact into the third. Succession planning for a closely held business is often exceedingly difficult because of its substantial value, limited marketability and lack of liquidity and because of the emotional baggage it represents within the family. In this session, we will explore:
- How the new IRC Section 2704(b) rules may impact even operating businesses
- Estate planning structures that may be compatible with family business equity
- Navigating the minefield of having children who are active in the business and those who aren’t
- Anticipating and addressing family members’ marriages and divorces
Among the most useful tools at an estate planner’s disposal is a power of appointment. There’s an almost infinite variety of powers of appointment, and they can be used to accomplish numerous important tax and non-tax estate planning objectives. In addition, powers of appointment may have significant, and sometimes surprising, tax consequences. In this presentation, we will examine numerous aspects of powers of appointment, including:
- Types of powers of appointment
- How to design, draft and exercise powers of appointment
- Tax characteristics of powers of appointment
- Goals that may be achieved using powers of appointment
The estate planning industry has largely evolved from focusing primarily on estate tax deferral and minimization to non-tax planning. Today, many of our clients whose estates used to be in the category of taxable are now receptive to addressing other matters, such as not making their children too rich too soon, protection of assets from claims of creditors and soon-to-be ex-spouses and selection of Trustees. During this session, we will address:
- Outright bequests versus trusts with mandatory distributions versus lifetime trusts
- Various discretionary distribution standard options
- Effectiveness of spendthrift and wholly discretionary trusts
- Designating appropriate initial and successor Trustees
Not all charges of breaches of professional ethics result from consciously attempting to cut corners, take advantage of a situation, extract excessive fees or treat someone unfairly. In fact, an ethics complaint may arise out of facts showing the respondent was striving to provide a laudatory level of service. During this program, we will look at issues that may develop from:
- Concurrent representation of spouses and other family members
- Planning for a client’s possible eventual incapacity
- Safekeeping of a client’s estate planning documents
- Disclosure of a disabled client’s confidential information
Speaker: Charles A. Redd, partner in the firm of Stinson Leonard Street LLP, concentrates his practice in estate planning, estate and trust administration and estate and trust-related litigation. He has extensive experience and expertise in drafting estate planning documents; tax planning for individuals, trusts and estates; preparation, filing and representation of estate, gift and fiduciary income tax returns; representation of individual and corporate fiduciaries and litigation in the Probate Division and other equity divisions of the Circuit Court. For more biographical information, click here.
Location: The Oklahoma City Community Foundation (directions).
Cost: There is no charge for the series. Lunch will be provided.
CE: Each teleconference provides 1.5 hours of continuing education credits for CPAs, CFPs, CTFAs, CWSs, CLEs, AFIMs, CLUs, ChFCs and attorneys. Cannon will report attendance for attorneys and CFPs only. All other attendees will be presented with a CE certificate to self-report attendance to the appropriate crediting organizations.
How to Register: The online registration form is available here. Registration is first-come, first-served as limited seating is available. Registration deadlines are one week prior to each teleconference. You may also register by calling Joni Younts at 405/235-5603. Questions? Contact Joe Carter at 405/606-2914.
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