NAEPC Webinars:

Wednesday, July 10, 2019 at 3:00pm - 4:00pm ET - Attorney-Client Privilege in a Team Environment

Source: The Robert G. Alexander Webinar Series

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Clients may assume that communications about their estate plans will remain confidential regardless of who is involved; but privilege doesn’t apply to all communications and can be easily waived, putting both client and attorney at risk. This program examines privilege in the estate planning context, distinguishes the work product doctrine, and particularly focuses on communications involving multiple members of the estate planning team.

Kim Kamin is a Principal at Gresham Partners, LLC, an independent multi-family office that currently serves about 100 ultra-high net worth families nationally. At Gresham, Kim serves as Chief Wealth Strategist, leading Gresham’s development and implementation of estate, wealth transfer, philanthropic, educational and fiduciary planning activities, and advising clients.

David C. Blickenstaff leads Schiff Hardin LLP’s national trust and estate controversy practice. In addition to handling high-stakes trust, estate, and guardianship cases, he helps corporate and individual fiduciaries avoid litigation by proactively managing their risk and defusing difficult situations before they reach the courthouse.

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

Wednesday, August 14, 2019 at 3:00pm - 4:00pm ET - Technology in Your Practice

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, September 11, 2019 at 3:00pm - 4:00pm ET - Topic TBD

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, 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.

Issue 31 – May, 2019

Editor’s Note

The Gift That Keeps on Giving!

Leveraging the Increased Estate Tax Exemption Amount

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

The Federal Estate Tax Exemption Amount Has Been Temporarily Doubled

Most advisors are aware that for 2019, the exemption for combined federal estate and gift tax purposes has been increased for inflation to $11.4 million per person/ $22.8 million per married couple (up from $11.18 per person/$22.36 per married couple in 2018).  The new exemption amount is a result of the 2017 Tax Act, which doubled the previous per person $5 million combined estate/gift-tax free amount (as adjusted annually for inflation).

Unfortunately, the increase is only temporary and is set to expire on 12/31/2025.  Unless there is a change in the tax law, as of 1/1/2026 the federal estate exemption will revert to the original amount of $5 million per person (as adjusted for inflation).  As you may recall, the inflation adjusted 2017 amount was $5,490,000.

Use It or Lose It

Because of the prospective reversion to the previous exemption amount, this could be a “use it or lose it” benefit for taxpayers.   Accordingly, clients may want to consider using the increased exemption amount for gifting purposes before it expires.  To further leverage the gift, consider gifting to a Dynasty Trust sitused in a state that has dramatically increased the length of time before a trust must come to an end, or abolished its “Rule Against Perpetuities” entirely.  In such a state, a properly drafted trust can pass wealth from generation to generation without incurring a transfer tax for as long as the assets remain in the trust.  (Note that proper drafting limits beneficiary control over the assets.)

Other considerations:  Individual state transfer taxes may be implicated on the initial transfer.  Also, income tax may apply to the trust based on several factors, such as the type of investments held within the trust, the state in which the trust is sitused and the state of residence of the beneficiaries.

Leveraging the Gift

Assets held within the dynasty trust and allowed to grow free of a federal generational transfer tax (note the maximum rate is 40%) may vastly increase over time as compared to assets that are not protected against such a tax.  Moreover, if the trust is drafted and sitused properly to avoid unnecessary exposure to state income tax every year, the corpus may increase faster still.  Some states even afford protection for trust assets against potential creditors.

What Happens at Sunset?

Will a grantor who made gifts sheltered by the increased exemption amount be subject to transfer tax if the exemption reverts to previous lower amounts?  The IRS answered this nagging question via Revenue Procedure 2018-57, which provides that there will be no “claw back” if the increased exemption amount is used before 2026.  In other words, gifts that were sheltered by the increased exemption amount from 2018 – 2025 will NOT be pulled back into the estate tax calculation and subjected to estate tax when the grantor dies.

In sum, a strategically drafted and sitused Dynasty Trust may provide a vehicle to leverage the current Estate Tax Exemption Amount by allowing the trust assets to grow generation after generation without exposure to federal transfer tax and possibly even income tax.  From a macro-family balance sheet perspective, this can greatly increase the family wealth.

Happy Reading!

 “Knowledge is weightless, a treasure you can carry easily” – Anonymous

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


Any suggestions contained herein are general, and do not take into account an individual’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. No warranty or representation, express or implied, is made by the Bank, nor does the Bank accept any liability with respect to the information and data set forth herein. The information contained herein is not intended to be, and does not constitute, legal, tax, accounting or other professional advice; it is also not intended to offer penalty protection or to promote, market or recommend any transaction or matter addressed herein. Recipients should consult their applicable professional advisors prior to acting on the information set forth herein. “Deutsche Bank” means Deutsche Bank AG and its affiliated companies. Deutsche Bank Wealth Management represents the wealth management activities conducted by Deutsche Bank AG or its subsidiaries. Trust and estate and wealth planning services are provided through Deutsche Bank Trust Company, N.A., Deutsche Bank Trust Company Delaware and Deutsche Bank National Trust Company.© 2019 Deutsche Bank AG. All rights reserved. WM1810310 028159 021319. MRG:  028683