Basis Planning Opportunities in Estate Planning (Completed)

The higher estate tax exemption means many family fortunes will no longer be subject to estate taxes. TCJA raised the total amount that may be transferred without being subject to the estate and gift tax to $11.58 million for individuals and $23.16 million for couples in 2020 (indexed for inflation in future years). This means that tax planning for family wealth now focuses on how to include highly appreciated assets in estate plans, to avoid or mitigate capital gains taxes when those assets are sold.

This course covers techniques for basis planning for family wealth, including spousal transfers and marital trusts, swap powers, powers of appointment, and a discussion of which assets are most conducive to basis planning.

Topics Covered

• Estate and Gift Tax Exemption Levels
• Special Rules re: basis of property received by gift or bequest
• Rules re: allocation of basis when not all the property is transferred
• Techniques for maximizing basis step up upon death

Learning Objectives

• Describe estate and gift tax exemption levels after TCJA
• Identify rules that apply in determining how to allocate basis, or determine which basis to use, when not all of a taxpayer's property is transferred
• Recognize how to explain the special rules that apply to property received by gift or inheritance
• Recognize techniques for obtaining basis step ups and describe which techniques work best for which types of assets

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None