NAEPC Webinars:

Thursday, September 5, 2019 at 2:00pm - 3:00pm ET - The Melton Family Case: Climbing the Philanthropic Learning Curve, a complimentary program provided with Trusts & Estates and sponsored by the Accredited Estate Planner® Designation

Source: The Robert G. Alexander Webinar Series

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The Competitive Context
Estate planners are rapidly adopting the NAEPC Multi-Disciplinary Teaming Model.  AEP® designees are in the forefront.  In this webinar you will see that a particular specialty (advice on grant-making for philanthropic impact) is often missing, even when philanthropy is a big part of the estate plan. Be aware: certain of your competitors do offer such advice.  

The Case 
The Melton’s recently sold a significant family business. With their advisors’ help, they set up a family foundation and have made their first grants. Then comes cordial chaos as the three generations of the Melton’s try to formulate a plan for grants that align with a shared vision of impact.  

By the end of this session you will be able to:

  • Identify when strategic grant-making advice is needed
  • Identify specialists providing such advice to family foundations and large donor advised funds
  • Decide whether you will handle such advice or hand it off

Trusts & Estates has applied for continuing education credit for CFP®, CIMA®, CPWA®, and AEP® designees.

About our Panelists

Phil Cubeta, CLU®, ChFC®, CAP®, AEP®, The American College
As the Sallie B. and William B. Wallace Chair in Philanthropy at The American College, Phil Cubeta is responsible for the Chartered Advisor in Philanthropy® (CAP®) curriculum. Phil's original training was in English Literature, and Philosophy and Psychology. He also holds the Masters of Science in Financial Services (MSFS) from The American College. He serves on the Planned Giving Advisory Board for The Carter Center (established by Jimmy and Rosalind Carter) and is a past President of the North Texas Council of Partnership for Philanthropic Planning. In 2012 he was, along with Charles Collier of Harvard, honored with the Fithian Leadership award by Advisors in Philanthropy. In that year he was also the “Power of the Purse” awardee (Advisor category) from Dallas Women’s Foundation. He currently serves on the Board of National Association of Estate Planners & Councils.

Tony Macklin, CAP®, Tony Macklin Consulting
A Chartered Advisor in Philanthropy®, Tony consults with donor families, grantmakers, and their advisors and associations about purpose, use of resources, action planning, and learning. In four years as executive director of the Roy A. Hunt Foundation, he facilitated changes in visioning, impact investing, grantmaking, trustee education, and operations for a multi-generation family. In twelve years and four roles at the Central Indiana Community Foundation, he led grantmaking and community change initiatives, advised generous entrepreneurs and families on philanthropic tools and strategy, attracted $39 million in assets and co-investments, and co-founded a social enterprise. Based in Fort Wayne, IN, Tony also serves as a Senior Advisor to the Impact Finance Center, Senior Consultant with Ekstrom Alley Clontz & Associates, and Senior Consultant with the National Center for Family Philanthropy. He’s volunteered for more committees, task forces, and boards than he can remember.

Jennie Zioncheck, CAP®, MFT, The Pittsburgh Foundation
Jennie has served as the Director of Development at The Pittsburgh Foundation since 2012. Her primary role is the development of close working relationships with professional advisors and to assist families in their philanthropy by facilitating family meetings and the creation and delivery of educational programming. Previously, Jennie was a Marriage and Family Therapist where she specialized in the use of systems theory to enhance individual functioning in the context of families, organizations and communities. Jennie is a graduate of Seton Hill University’s Marriage and Family Therapy Masters Program and holds the Chartered Advisor in Philanthropy designation. She is an experienced consultant for families facing multigenerational issues, family foundations, donor-advised fund holders, and other family enterprises during times of transition. Jennie has served as a presenter and trainer for financial advisory firms focusing on philanthropic planning, 21/64 Consulting Firm, The Advancement Network for community foundations, and The Bayer Center for Non-Profit Management. 

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Please note that the information appearing below about the Robert G. Alexander webinar series (cost, continuing education credit, etc.) does not apply to this special webinar.  

Wednesday, September 11, 2019 at 3:00pm - 4:00pm ET - Growing Your Firm’s Revenue using the Non-Grantor Trust State Income Tax Chart

Source: The Robert G. Alexander Webinar Series

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This program illustrates a number of different opportunities to save state income tax using different non-grantor trust options.  The presenter will show the attendees how to use a special two-page 50-state non-grantor trust state income tax chart in order to create opportunities to save state income tax.

Steven J. Oshins, Esq., AEP® (Distinguished) is a member of the Law Offices of Oshins & Associates in Las Vegas, Nevada.  He practices in the areas of estate tax planning, income tax planning and asset protection.  He was inducted into the NAEPC Estate Planning Hall of Fame in 2011.

REGISTER HERE for the individual program. To register for the 2019 webinar series, please click HERE

Wednesday, October 16, 2019 at 3:00pm - 4:00pm ET - Elder Law and Special Needs Planning

Source: The Robert G. Alexander Webinar Series

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This intermediate level program will provide an update on elder law and special needs planning, including how to draft a plan that works and takes into account future incapacity of the client and benefiicaries.  Use of trusts will be discussed, as well as appropriate trust distribution standards.

Bernard A. Krooks is the founding partner of the New York law firm Littman Krooks LLP and chair of its elder law and special needs department. He is past president of the Arc of Westchester, the largest agency in Westchester County, NY serving people with intellectual and developmental disabilities and their families.

A frequent presenter at the Heckerling Institute on Estate Planning and other national estate planning conferences, Mr. Krooks is immediate-past Chair of the Elder Law Committee of the American College of Trust and Estate Counsel (ACTEC) and Chair of the Elder Law and Special Needs Planning Group of the Real Property, Trust & Estate Law (RPTE) Section of the American Bar Association. He is past president and fellow of the National Academy of Elder Law Attorneys (NAELA), past president and founding member of the New York Chapter of NAELA, past Chair of the Elder Law Section of the New York State Bar Association, and past president of the Special Needs Alliance, a national invitation-only non-profit organization dedicated to assisting individuals with special needs and their families.

Mr. Krooks, author of numerous articles on elder law and related topics, is chair of the Elder Law Committee of Trusts & Estates Magazine, and serves on the Wolters Kluwer Financial and Estate Planning Advisory Board and the Advisory Committee of the Heckerling Institute on Estate Planning.

REGISTER HERE for the individual program. To register for the 2019 webinar series, please click HERE

Wednesday, December 11, 2019 at 3:00pm - 4:00pm ET - Longevity

Source: The Robert G. Alexander Webinar Series

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Detailed information regarding this presentation will be posted soon.

REGISTER HERE for the individual program. To register for the 2019 webinar series, please click HERE.

Wednesday, January 8, 2020 at 3:00pm - 4:00pm ET - Reverse Mortgages

Source: The Robert G. Alexander Webinar Series

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Detailed information regarding this presentation will be posted soon.

Wednesday, February 12, 2020 at 3:00pm - 4:00pm ET - Basis Step-Up Strategies in Light of Portability and Tax Law Changes

Source: The Robert G. Alexander Webinar Series

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Detailed information regarding this presentation will be posted soon.

Spousal Lifetime Access Trust

Susan P. Rounds, JD, CPA, LL.M. (taxation), AEP®, TEP

Under the Tax Cuts and Jobs Act enacted in December 2017, the exemption amount against gift and estate taxes has doubled from the previous $5 million per person/$10 million per married couple to $10 million per person/$20 million per married couple. Indexed for inflation, the 2019 exemption has reached $11.4 million per person/ $22.8 million per married couple. The exemption amount applies to combined transfers made during life and at death.

This may be a significant opportunity for wealthy taxpayers, but will only last through the end of 2025. Under a sunset provision in the new law, the exemption will return to the previous amount of $5 million per person/$10 million per married couple, indexed for inflation, unless Congress extends the law. The change may affect a large number of current estate plans and create uncertainty around what decisions should be made to optimize the opportunity.

Transferring assets out of the estate now to reduce estate taxes later is often a good strategy, but taxpayers may be reluctant to make a large gift to take advantage of the increased exemption amount because they fear losing access to the transferred funds. Enter the Spousal Lifetime Access Trust (“SLAT”), a type of irrevocable trust that may be used to preserve the transfer tax benefit of the increased exemption amount while also building flexibility into the estate plan.

  • Structure: A SLAT is an irrevocable trust established by one spouse for the benefit of the other spouse and the couple’s children and/or grandchildren. It requires use of the donor spouse’s exemption amount to protect the transfer from gift tax.
  • Other Factors: Choosing an independent or corporate trustee is a best practice for asset protection purposes. The beneficiary-spouse can receive distributions in the discretion of the independent trustee, providing a safety-net.
  • Funding: When funding the SLAT, the grantor-spouse should use his or her separate property, as opposed to jointly owned or community property (this could make the transferred property includible in the estate of the beneficiary-spouse).
Benefits

As an irrevocable grantor trust, the SLAT may provide some of the non-tax estate planning benefits listed below, while allowing the beneficiary-spouse access to the trust funds if needed.

  • Freeze Grantor’s Estate: The transfer to the SLAT is a completed gift and therefore removes future appreciation on the contributed assets from the estate of the grantor-spouse for purposes of estate and gift taxes (as well as generation-skipping transfer tax).
  • Additional Tax-Free Gifts: A SLAT is generally treated as a grantor trust for income tax purposes, meaningthat the grantor is responsible for paying the trust’s income taxes, and not the trust itself. This effectivelyallows the grantor to make additional tax-free gifts to the trust and its beneficiaries, thereby enhancing thewealth transfer benefits of the SLAT.
Drawbacks

A few potential drawbacks to the SLAT are the following:

  • Access to Funds Is Not Unlimited: If distributions are made to the beneficiary-spouse, who consistentlyuses them to benefit the grantor-spouse, this could be considered a retained interest on the part of thegrantor-spouse and make the trust assets includible in the grantor-spouse’s estate for estate tax purposes.
  • Divorce or Death of Beneficiary-Spouse: If there is a divorce or the beneficiary-spouse dies, the grantor-spouse will lose indirect access to the trust. Accordingly, the grantor-spouse may want to limit the amounttransferred to the trust, or provide that if the grantor remarries, the new spouse will be a trust beneficiaryor that the trustee may lend trust property to the grantor.
  • Reciprocal Trust Doctrine: Couples may wish to establish SLATs for each other to ensure indirect accessto funds. To avoid the “Reciprocal Trust Doctrine,” which could effectively undo this planning, it isgenerally advisable to vary the provisions of the two trusts, such as by granting a power of appointment to only one spouse or by altering the distribution standards and classes of beneficiaries.

The SLAT is an important tool that may allow a grantor-spouse to take full advantage of the increased exemption amount while permitting indirect access to the trust funds by way of the beneficiary-spouse’s interest. Ideally, however, this access would never be needed, and as long as the grantor-spouse is still responsible for paying the trust’s income tax liability, an even greater amount of assets will pass to the next generation free of federal estate and gift tax.

Email me at editor@naepcjournal.org with your comments and suggestions.


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