Trusts: 2019-2020 Planning Roadmap Part 2

October 29, 2019

In this world of constant uncertainty, only one thing is clear, planners need a roadmap in order to be successful in crafting strategies to preserve and protect their clients’ wealth.

Planning for large estates: enhanced note sales to grantor trusts (“IDITs”) for UHNW client wealth transfers; consider “stepped” or deferred interest on promissory notes to facilitate a larger sale than current cash flow may permit; be wary of the Hart Scott Rodino Act requirements; differentiate collateral on note sale to possibly break IRS challenges of a retained interest on a note sale; defined value mechanisms might be enhanced and modified for new planning; Is Wandry King? What type of price adjustment mechanism might you use?; consider a two-tiered Wandry approach to deflect a Powell challenge; incorporate an economic adjustment mechanism in your defined value technique; consider using a two-tier defined value adjustment on sales to non-grantor trusts; divide a QTIP to possibly contain the risk of a 2519 challenge; use of an independent escrow agent; use non-grantor trusts to save Net Investment Income Tax (“NIIT”); schedule annual trust meetings: proper trust operation is vital to achieving intended income tax status;  consider downstream planning (not upstream) for UNHW clients;

Additional trust planning: consider structuring a community property trust for basis step-up on first death; be wary of risks of upstream planning; credit shelter basis planning risk; maximize GST tax planning before potential changes; Grantor Retained Annuity Trusts (“GRATs”); Crummey powers, powers of attorney and insurance trusts.

Practice safer estate planning: modify retainer agreements, disclaimers and more.

*This is a stand alone webinar, but if you would like to view Part 1 “Estate Planning Roadmap 2019-2020: Planning before the 2020 Election; State Income Taxation of Trusts; Aging, Longevity,” it can be viewed on, along with recordings for other webinars.