2022 Income & Fiduciary Tax Issues for Trust & Estate Planners, Part 2

Recording available after original program date, 10/11/2022

Understanding fiduciary income taxation – the taxation of grantor and non-grantor trusts, complex and simple trusts – is essential to trust planning.  It impacts the type of trust chosen, how it’s structured and administered. Recently changes to federal tax law have added to the complexity of fiduciary income taxation. The tax treatment of trust income and accounting for distributions and expenses varies depending on the type of trust involved and how “Distributable Net Income” is allocated.This program will provide you with a real-world guide to the essential rules, timeframes, planning techniques and traps of the taxation of trusts.

Day 1:

• Fiduciary income taxation framework and rules for estate and trust planners
• How fiduciary and income tax planning differ from each other
• Planning for fiduciary taxation v. planning for individual and corporate tax purposes
• Types of trusts – simple, complex, grantor – and differing tax rules for each
• Treatment of “Distributable Net Income”
• Understanding “Trust Accounting Income,” and impact of Prudent Investor Rule

Day 2:

• Practical income allocation for simple, complex and grantor trusts
• Specific allocation rules for DNI – Tier System, Separate Share Rule, 65 Day Rule, specific bequests
• Charitable giving – tax treatment and practical impact
• Treatment of depreciation, administrative expenses, and allocation to income
• Trust terminations – capital loss carryover and excess deductions

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.