March 30, 2009

Evaluating the Sometimes Surprising Impact of Grantor Trusts on Competing Strategies to Transfer Wealth

Since all commonly used transfer tax techniques use grantor trusts, the grantor’s payment of the income taxes on the trust’s income can have a far greater impact than valuation discounts and rates of return greater than the Code’s minimum rates.  By analyzing the impact of grantor trust status on outright gifts in trust, GRATs, installment sales, private annuity sales, SCINs and CLATs, and sensitizing the tax advisor to factors often ignored, one can better choose the appropriate strategy for a particular client.

This presentation focuses on the impact of Grantor Trust treatment on the menu of estate planning techniques and illustrates how complex tax planning techniques can be compared and contrasted simply and effectively.

Presentation Objectives:
The objectives of this 60-90 minute audio discussion include providing participants with a conceptual understanding and practical application of the following:

• Shifting more wealth free of transfer taxes: grantor trust status vs. valuation discounts vs. estate freezes
• Continuation of grantor trust status in the long run
• Techniques   
  • Gifts to irrevocable trusts
  • GRATs
  • Installment sales to grantor trusts
  • Private annuity sales to grantor trusts for healthy individuals
  • SCIN sales to grantor trusts
  • Charitable lead trusts
    1. Intervivos CLATS
    2. Testamentary CLATS
    3. What powers can be used to create a grantor CLAT
  • The credit shelter trust for the benefit of the surviving spouse
• Communicating Complex Tax Planning Techniques Simply
  • A spreadsheet analysis
  • Comparing the results of the alternative techniques
  • Satisfying the five minute test

Upon completion of this program, participants will be able to:

• Choose the appropriate transfer wealth strategy for a client
• Understand and recognize competing transfer techniques
• Understand the impact of grantor trust status on outright gifts in trust, GRATs, installment sales, private annuity sales, SCINs and CLATs
• Communicate complex tax planning techniques to a client with the use of spreadsheet analysis

Recorded on March 30, 2009, this audio event is available on CD for purchase.