This program covers the basics of using trusts to avoid estate tax for a married couple.  It begins with a review of the often-overlooked non-tax reasons to use trusts, and explains in detail how A-B trust planning is used to achieve optimum estate tax results with revocable living trust. It provides a solid foundation for understanding current estate planning techniques to minimize both estate tax and income tax.  Substantial time will be allowed for questions.

Attendees will leave with a solid fundamental understanding of the benefits and problems with use of A-B trusts, and will be ready to address more sophisticated estate planning concepts. 

Learning Objectives

• Effect of loss of step up on assets in bypass trust.


• Uses and tax consequences of powers of appointment.


• Use of a limited general power of appointment to optimize basis step up on the second death.


• Use of Clayton provision to facilitate income tax planning.


• Adverse income tax consequences of non-grantor trusts.


• Use of a limited general power of appointment to make a beneficiary the grantor of a trust.


• Impact of the 2017 tax act on A-B trust planning, and related opportunities for CPAs.


• Why your clients need to have their formula-based trusts reviewed immediately.