ESBTs, QSSTs and Other S Corporation Allowed Trusts: How Trusts Can be Used as S Corp Shareholders (Currently Unavailable)

Author: Steven G. Siegel

This two-hour online CPE course provides a helpful review of the types and uses of trusts that may serve as shareholders of an S corporation, with special emphasis on the Electing Small Business Trust (ESBT) and the Qualified Subchapter S Corporation Trust (QSST). Presented by noted estate planner, author and educator, Steven G. Siegel, J.D., LL.M., this program offers a clear and concise review of the different types of S allowed trusts, how they are taxed, steps necessary to secure the desired treatment, permitted beneficiaries, how to report their income, planning ideas for different situations, and more. Siegel, an outstanding speaker and presenter, will provide helpful explanations and tips on this important topic, so you can advise your clients with confidence.

Publication Date: July 2017

Designed For
This course is essential for tax return preparers, CPAs, enrolled agents, tax attorneys and other professionals who advise clients on tax, retirement and estate planning, and other wealth management matters. All accountants, attorneys and financial planners who advise clients on tax and estate planning and other wealth management matters will benefit from this insightful seminar.

Topics Covered

• What is an ESBT? What are its required provisions?
• How is the trust taxed and what are the reporting requirements?
• How are the trust beneficiaries taxed?
• Permitted beneficiaries of an ESBT
• What elections are required?
• How are the non-S corporation assets owned in an ESBT treated?
• Planning with ESBTs
• Converting an ESBT to a QSST and a QSST to an ESBT
• What is a QSST? What are its required provisions?
• What elections are required?
• Who are the permitted beneficiaries?
• Coordination of QSSTs with the Grantor Trust rules
• How are the QSST and its beneficiaries taxed?
• Planning with QSSTs
• Reporting requirements
• Other Trusts as S Corporation Shareholders
• Grantor Trusts
• Beneficiary-controlled Trusts
• Testamentary Trusts
• Voting Trusts

Learning Objectives

• Identify and apply a comprehensive basic understanding of trusts that can be used as S corporation shareholders
• Recognize how S corp allowed trusts operate and how they are taxed
• Differentiate key compliance and reporting requirements ESBTs and QSSTs
• Plan for key compliance and reporting issues under the new Net Investment Income Tax
• Identify planning opportunities for clients to use trusts as S shareholders
• Describe the type of trusts qualifying as shareholders in a S corporation
• Differentiate statements related to grantor trusts and S corporations
• Describe testamentary trusts
• Identify ESBT qualification provisions
• Recognize how to switch between ESBT and QSST status
• Describe the most popular form of entity choice for a closely held business
• Identify the type of trust referred to as a Subpart E trust
• Recognize the 1990 congressional act which expanded the post-death holding period to two years for grantor trusts
• Identify the number of years in a trust period is required for a testamentary trust
• Identify a type of trust created primarily to exercise the voting power of stock transferred to it
• Recognize which type of election with a special power of appointment in favor of any person other than the income beneficiary will disqualify the trust
• Describe how often a trustee must distribute all of its trust accounting income
• Identify the alternative minimum tax exemption for the S corporation of a trust
• Recognize characteristics of trust reporting requirements

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of S corporation taxation and taxation of trusts.

Advance Preparation
None