Upcoming Events

• Oil and Gas to absorb passive loss carryforwards
• Roth conversions to absorb freed-up suspended passive losses

In Smaldino v. Comr., T.C. Memo. 2021-127 (November 10, 2021), the Tax Court recharacterized a gift purportedly made by the petitioner’s wife to a dynasty trust for the benefit of the petitioner’s children and grandchildren (who were not the spouse’s descendants) as having been indirectly made by the petitioner to the dynasty trust, which resulted in a much higher gift tax liability. This case is rich with lessons for how spousal gifts should be-and should not be-done, and it presents an opportunity to review the risks of indirect gifts.

In their exclusive LISI webinar, long-time LISI teammates Bob Keebler and Paul Hood analyze and break down the lessons from the Smaldino decision, and along the way, Bob and Paul will cover the following items:

• Complete coverage and analysis of Smaldino v. Comr., T.C. Memo 2021-127.
• We’ll discuss the all-important organization and history of the gift tax, because it’s impossible to understand the wide scope of the gift tax without doing so. The gift tax is very different from the estate tax, even though the two are unified.
• Magnitude of proper and consistent documentation of spousal and subsequent transfers for both common law and community property states.
• Critical importance of consistency in reporting between the gift and income taxes.
•  Review of critical differences between the gift and the estate tax, including the important historical and statutory differences between the two transfer taxes.

Don’t miss this important webinar!

In this fast-paced webinar Bob Keebler will present a summary of California’s new fiduciary income tax law requiring incomplete trusts to be taxed in California as a California grantor trust.

This is must-have information for all California, Alaska, Delaware, Nevada, South Dakota and Wyoming trust officers, CPAs and trust and estate lawyers.

Bob will address precisely what the Bill does and solutions, including:

• Overview of prior California law and Federal law.
• Overview of the new statute.
• The election to be treated as a California “nongrantor trust.”
• No free lunch on earlier “throwback years.”
• The use of completed gift trusts to avoid the reach of the California law.
• The use of charitable remainder trusts to defer Federal and California Tax.
• Transferring property from existing INGs to completed gift trusts.
• Selling property from INGs to completed gift trusts via IRC § 453 installment sales.
• Using life insurance and other tax shelter strategies.
• Other ideas to mitigate California’s attempt to checkmate the ING strategy.

Year-end planning in 2023 is as important as ever. Looming changes to the tax code and market losses provide excellent low-or-no-risk opportunities to reduce your clients’ tax burden. Starting planning now will ensure you have the time to meet with clients, review their situation for ideas, and show your value.

This session will provide, ideas, tips, and tools to act before year-end to minimize your client’s tax liabilities – including:

• 2023 year-end legislative update
• Bracket management considering: historically low rates, the scheduled sunset, and the potential changes
• Gain harvesting to capture a rate advantage
• The mathematics of loss harvesting
• Advanced Roth conversions
• Rethinking itemized deductions and charitable contributions
• Funding tax-preference accounts, including retirement plans and 529 accounts
• Section 199A deduction proposed changes and planning
• Year-end estate and gift planning
• Converting interest income to capital gain income
• Utilizing large loss carry forwards
• How do charitable lead annuity trusts work: both grantor and nongrantor
• How to use a CRT to smooth out income
• How to use oil and gas to offset substantial income
• How to use defined benefit pension plan

To order both Part 1 and Part 2 click this link

This webinar is designed to equip you with the knowledge and skills needed to effectively navigate through the complexities of Form 706.

During this session, our expert presenter will walk you through the entire process of preparing the Form 706 Estate Tax Return. You will learn essential tips, tricks, and best practices to ensure accuracy and compliance while maximizing tax-saving opportunities.

Key Topics Covered:

• Understanding the purpose and significance of Form 706
• Identifying assets subject to estate tax
• Proper valuation techniques for different types of assets
• Filing requirements and deadlines
• Navigating common pitfalls and avoiding penalties
• Leveraging deductions and credits to minimize estate tax liability
• Recent updates and changes to the Form 706

Whether you are new to estate tax returns or seeking to enhance your existing knowledge, this webinar is a must-attend event. Don’t miss out on this opportunity to expand your expertise and gain confidence in handling the Form 706 Estate Tax Return.

In this brand-new class Bob will provide an overview of the fundamentals of the U.S. transfer tax system, including the gift tax, estate tax, and the generation-skipping transfer tax. This class is ideal for the young lawyer, CPA or financial expert new to trust and estate practice and even experienced practitioners transitioning from other areas.

While fundamentally a review of the statutes that govern this area of work, Bob’s 30 years of experience will provide many hard-hitting examples which will crystallize each point.

In this class Bob will cover:

• Gift Tax
  • Basics
  • Statutory Overview
  • Income Tax Basis
  • Annual Exclusion
  • Crummey Gifts / Crummey Trusts
  • Exclusions
  • Martial Deduction
  • Gift Splitting
  • Filing Requirements
  • Adequate Disclosure
  • Defined Value Clauses – Wandry
• Generation Skipping Transfer (GST) Tax
  • Basics
  • Skip vs. Non-skip Person
  • Direct vs. Indirect Skips
  • Taxable Distributions & Terminations
  • Inclusion Ratio Calculations
  • Allocations
• Estate Tax
  • Basics
  • Statutory Overview
  • State Law
  • Elections & Allocations
  • Filing Requirements
  • Portability Election & the Mathematics
  • Administrative Expense Deductions
  • Martial Deduction
  • Calculations – Including Interrelated (circular) Calculations
  • Credits
  • Protecting the Executor