understanding fiduciary income taxation for estate ... · understanding fiduciary income taxation...

UNDERSTANDING FIDUCIARY INCOME TAXATION FOR ESTATE PLANNERS,

PART 1 & PART 2

First Run Broadcast: August 14 & 15, 2012

1:00 p.m. E.T./12:00 p.m. C.T./11:00 a.m. M.T./10:00 a.m. P.T. (60 minutes)

Fiduciary income taxation – the taxation of grantor and non-grantor trusts, complex and simple

trusts – has a logic all its own. Familiar tax concepts for individuals and business entities do not

apply or apply in non-intuitive ways. Understanding how income and gain are calculated in

trusts, when they are reported and by whom – the trust itself or a beneficiary – are essential

concepts for estate planners to know. Understanding these complexities is essential to

minimizing adverse tax consequences in planning a client’s estate. This program will provide

estate planners with a real-world guide to the essential concepts, timeframes, planning techniques

and traps of the taxation of trusts.

Day 1: August 14, 2012:

What estate planners need to understand about the taxation of trusts

Grantor v. non-grantor trusts and when it's beneficial to classify as one or the other for

tax purposes

“Distributable net income” and allocation of income and gain to trusts and beneficiaries

Differences between fiduciary income taxation and business entity and individual

taxation

Common misunderstandings of fiduciary income taxation

Day 2: August 15, 2012:

How the fiduciary income tax applies to simple and complex trusts

Distribution planning to maximize tax-efficiency

Relationship of federal tax to state taxes, and planning traps and opportunities

Expense issues - what costs can you expense, when and how?

Common compliances issues across different types of trusts

Speaker:

Jeremiah W. Doyle, IV is senior vice president in the Boston office of BNY Mellon Wealth

Management, where he provides integrated wealth management advice to high net worth

individuals on holding, managing and transferring wealth in a tax-efficient manner. He is the

editor and co-author of “Preparing Fiduciary Income Tax Returns,” a contributing author of

Preparing Estate Tax Returns, and a contributing author of “Understanding and Using Trusts,”

all published by Massachusetts Continuing Legal Education. Mr. Doyle received his B.S. from

Providence College, his J.D. form Hamline University Law School, and his LL.M. in banking

from Boston University Law School.

PROFESSIONAL EDUCATION BROADCAST NETWORK

Speaker Contact Information

Understanding Fiduciary Income Taxation for Estate Planners,Part 1 & Part 2

Jeremiah "Jere" W. Doyle, IVBNY Mellon Wealth Management(o) (617) [email protected]

David T. LeibellWiggin & Dana, LLP - Greenwich, Connecticut(o) (203) [email protected]

BNY MELLON WEALTH MANAGEMENT

Income Taxation of Trusts and Estates –

Basics

Jeremiah W. Doyle IV

Senior Vice President

BNY Mellon Wealth Management

Boston, MA

July, 2011© Jeremiah W. Doyle IV

All Rights Reserved


What We’ll Cover – Part I, The Basics• Structure of Subchapter J

• Basic Rules

• Distributable Net Income (DNI)

• Types of Trusts

• Trust Accounting Income (TAI)

• Taxable Income

• Distribution System – How DNI Gets Allocated

– Tier System

– Separate Share Rule

– 65 Day Rule

– Specific Bequests

• Charitable Deductions

• Depreciation

• Terminations – Capital Loss C/O and Excess Deductions

• Administration Expenses

– Allocating Expenses to Tax Exempt Income


Income Taxation of Trusts and Estates

Code Outline

PART I, SUBCHAPTER J

– Subpart A - Sec. 641-646 - General Rules

– Subpart B - Sec. 651-652 - Simple Trusts

– Subpart C - Sec. 661-664 - Complex Trusts and CRT

– Subpart D - Sec/ 665-668 - Accumulation Distributions

– Subpart E - Sec. 671-678 - Grantor Trusts

– Subpart F - Sec. 681-685 - Misc. Rules

PART II, SUBCHAPTER J

– Sec. 691-692 - Income in Respect of a Decedent



• Separate Taxable Entities

• Taxable Income Computed in Same Manner as Individuals (Sec.

641(b))

• Own Tax Year and Method of Accounting

• Receive Income/Pay Expenses

• Income Taxed to Entity or Beneficiary


2012 Fiduciary Income Tax Rates

Over Not Over

0 2,400 15%

2,400 5,600 25%

5,600 8,500 28%

8,500 11,650 33%

11,650 35%



Income Taxed to Either Entity or Beneficiary

– If income is accumulated and not deemed distributed, it is

taxed to the trust or estate

– If income distributed:

• Trust gets deduction for amount of distribution

• Beneficiary accounts for income distributed on his own tax return



DNI

Distributable Net Income (DNI) governs:

– Amount of trust or estate’s distribution deduction

– Amount beneficiary accounts for on his own return

– Character of income in beneficiary’s hands



Trust/Estate Beneficiary

DNI acts as ceilingon entity’s

distributiondeduction

DNI acts as ceilingon amountbeneficiary

accounts for on hisreturn

DNI


DNI - Sec. 643(a)

Start With Taxable Income and . . .

– Add back the distribution deduction

– Add back the personal exemption

– Subtract out capital gains/add back capital losses allocable to

principal (except in the year of termination)

– Subtract out extraordinary dividends and taxable stock

dividends

– Add back net tax-exempt income


DNI - Sec. 643(a)

Note: capital gains generally taxed to trust or estate

– Exception: year of termination

Note: The rules regarding DNI and the distribution deduction areapplied differently to simple trusts versus complex trusts andestates

Distributions of principal as well as income will “carry out” DNI

– Exception: Specific bequests under Sec. 663(a)(1)


Types of Trusts

• Simple

• Complex

• Grantor


Simple Trust

• Required to distribute accounting income annually

• Makes no principal distributions, and

• Makes no distributions to charity


Complex Trust

• Accumulates income

• Makes discretionary distributions of income or mandatory or

discretionary distributions of principal, or

• Makes distributions to charity


Grantor Trust

• Grantor or beneficiary has one or more “powers” described in

Sec. 673-678

• Result: All income, expenses and credits “flow through” and are

taxed to the Grantor or beneficiary regardless of whether

distributions are made

• Subpart A-D, Subchapter J (rules for taxation of trusts and

estates) do not apply to Grantor trusts


Trust Accounting Income (TAI)

• Governs amount of distributions

• Trustee allocates receipts/disbursements between accounting

income and principal

• Accounting income and principal is determined by governing

instrument or, if instrument silent, by state law

– May be governed by UPIA or unitrust statute


Trust Accounting Income (TAI)

TAI Taxable Income

Corp Bond Int

Capital Gains

Muni Bond Int

Expenses ? ?


Trust Accounting Income - TAI

BACKGROUND

• Prudent Investor Act

– Modern portfolio theory – invest for total return

Replaces the traditional notions of income and principal

– Enactment of the Uniform Principal and Income Act

– Enactment of Unitrust statutes


Trust Accounting Income - TAI

TRUST ACCOUNTING INCOME

– Could be TAI defined under:

• Traditional definition of income and principal

• Unitrust statute

– Must be no less than 3%, no more than 5% of FMV of trust assets

• Uniform Principal and Income Act

– Requirements:

»Trust is managed under the Uniform Prudent Investor Act

»The beneficiary must be eligible for income distributions

»The distribution is not favorable to one beneficiary over

another


Taxable Income of Trust or Estate

• Computed same as individual

• Exemptions: $600/$300/$100

• Different rules for charitable deductions

• Depreciation deduction allocated between entity and beneficiary

• Distribution deduction

• Administration expenses - some not subject to 2% floor

• AGI - same as individual except (a) personal exemption, (2)distribution deduction and (3) some administration expenses aresubtracted “off the top,” i.e. subtracted from taxable income toarrive at AGI


Distributions - Simple TrustBeneficiary Taxed on Lower of TAI or DNI

Gains Taxed to Trust

SimpleTrust

Beneficiary

DNI

GainsTrust Gets DistributionDeduction Equal to DNI

Beneficiary Accounts for DNI

Trust income retains itscharacter in Beneficiary’s hands


Distributions - Complex Trusts and

Estates

ComplexTrust

DNI

GainsGains and DNI Taxed toTrust

Trust/Estate Accumulates Income


Distributions - Complex Trusts and

EstatesBeneficiary Taxed on Distributions Up to DNI

Gains Taxed to Trust

ComplexTrust

Beneficiary

DNI

GainsTrust Gets DistributionDeduction Equal toDistributions up to DNI

Beneficiary Accounts forDistributions Up to DNI

Trust income retains itscharacter in Beneficiary’s hands


651 661

662652

Simple Trusts Complex Trusts/Estates

Distributions - Applicable Code Sections


651 661

662652



DistributionDeduction


651 661

662652



DistributionDeduction

Amt BeneAccounts For


Allocation of DNI

FOUR IMPORTANT COMCEPTS:

• Tier System

• Separate Share Rule

• 65 Day Rule (§663(b) election)

• Specific Bequests - §663(a)(1)


Complex Trust and Estates

Tier System

Two tiers:

– First Tier - Distribution of income required to be distributed

currently

– Second Tier - Distribution of all other amounts paid,

credited or required to be distributed



Tier System

First Tier Beneficiary

Second Tier Beneficiary

DNI

DNI is taxed first to FTB and anybalance of DNI is taxed to STB



Tier System - Example

Facts: $40,000 DNI and TAITrust requires A receive 50% of incomeTrustee makes discretionarydistributions of $20,000 to each B and C

A is FTB (Gets 50% of $40,000 TAI)

B and C are STB (Discretionary Benes)




$40,000 DNI

($20,000) DNI for FTB

$20,000 DNI for STB

2 STB

$10,000 DNI for Each STB




$40,000DNI

A B C

$20,000 DNI

FTB

$10,000 DNI

STB

$10,000 DNI

STB


Separate Share Rule

Solely for purposes of computing DNI, substantially separateand independent shares of different beneficiaries of a trust aretreated as separate trusts.

Effect: Treat multiple beneficiaries of single trust orestate as if each were the sole beneficiary of a singletrust solely for determining how much DNI eachdistribution carries out.


Separate Share Rule

Estate has $10,000 DNI for 2010

Two Equal Beneficiaries: A and B

Distributes $10,000 to A in 2010

A taxed on $10,000


Distributes $10,000 to B in 2011

B taxed on $5,000

Same amount paid in 2 different years, different tax result


Separate Share Rule


Two Equal Beneficiaries: A and B

Distributes $10,000 to A in 2010

A taxed on $5,000 ($10,000 DNI/2)


Distributes $10,000 to B in 2011

B taxed on $2,500 ($5,000 DNI/2)

DNI computed based on 2 separate shares


Separate Share Rule

• Applies to estates and trusts

• DNI computed separately for each share

• Mandatory, not elective

• Only Affects share of DNI

– Doesn’t allow filing multiple returns

– Doesn’t allow separate calculation of tax


65 Day Rule aka Sec. 663(b) Election

• Applies to complex trusts and estates

• Allows fiduciary to treat distribution made within 65 days of Y/E as

being made on 12/31 of preceding year

• Election must be made by due date of return

• Election is irrevocable

• Year by year election (e.g. good for 1 year only)

• Limited to > DNI less current year distributions or TAI not distributed



65 Days

12/31

2010 2011



65 Days

12/31

2010 2011

Facts: $10,000 DNI for 2010

Distributes $6,000 in 2010, $4,000 in 2011

$6,000

$4,000


Specific Bequests - Sec. 663(a)(1)

• Bequest of specific sum of money or specific property do not carryout DNI

• Requirements:

– Paid all at once, or

– Paid in not more than 3 installments

• Not deductible by trust/estate or taxable to beneficiary


Charitable Deduction - Sec. 642(c)

• Requirements:

– Paid from gross income

– Paid pursuant to the governing document

• Unlimited in amount

• No distribution deduction

• Generally, must be actually paid in current year or preceding year

– Estates and pre- 1969 trusts get charitable deduction if

“permanently set aside”


Depreciation - Sec. 642(e)

Trusts:

– Depreciation apportioned between income beneficiary and the

trust per trust document

– If no provisions in trust, depreciation apportioned on basis of

trust income allocable between bene and trust

Estates:

– Depreciation allocable on basis of income allocable to bene

and estate



Example

FACTS:

• Trust owns apartment building

• $2,500 depreciation deduction

• Trust pays all income to beneficiary

Beneficiary is entitled to entire $2,500depreciation deduction



Exceptions

GR: Depreciation allocated based in TAI allocated to trust/estate

and beneficiary

2 exceptions - both apply to trusts:

– Trust inst or local law indicates who get depreciation deduction

– Trustee maintains depreciation reserve, trust gets deduction to

extent trustee transfers income to reserve for depreciation



Example

FACTS:

• Depreciation deduction is $5,000

• TAI is $20,000

• Inst requires trustee to maintain depreciation reserve

• Trustee transfers $5,000 of income for depreciation reserve

RESULT: Entire $5,000 depreciation deduction is allocated to trust


Termination of Trusts and Estates - Sec.

642(h)/Unused Loss Carryovers and

Excess Deductions

• NOL, capital loss c/o and “excess deductions” pass to the

beneficiary on termination of an estate or trust

• Pass through only in the year of termination


Capital Loss C/O

• Unused capital loss c/o passes to beneficiary in year of

termination of trust or estate

• No time limit on beneficiary to use capital loss c/o


Capital Loss C/O

Example

FACTS:

• Trust incurs $30,000 LTCL in 2010.

• Trust terminates in 2011, LTCL c/o still $30,000

• $30,000 LTCL c/o passes to beneficiary on termination

• Beneficiary can use LTCL c/o to offset his own personal capital

gains or, if he has no gains, deduct up to $3,000 each year

against ordinary income


“Excess Deductions”

• “Excess deductions” occur where trust/estate expenses exceed

income in year of termination

• “Excess deductions” pass through to beneficiary on termination of

trust/estate

– Beneficiary can deduct on his personal return

• Deductible as miscellaneous itemized deduction subject to 2%

floor

– If beneficiary doesn’t itemize, he can’t use deduction


“Excess Deductions”

Example

FACTS:

• Estate has $30,000 of income and $50,000 executor’s fee for

2010.

• Estate terminates in 2010

• “Excess deductions” are $20,000 ($30,000 - $50,000)

• Estate reports the $20,000 excess deduction to the beneficiary

on a Form K-1 (“tax letter”)

• Beneficiary can take $20,000 “excess deduction” on his own

personal return as a miscellaneous itemized deduction subject

to the 2% floor


Administration Expenses

• Consist of attorney’s fees, accountant’s fees, executor’s

commissions, filing fees, surety bonds premiums, appraisal fees,

etc.

• Deductible on Federal estate tax return (706) or fiduciary income

tax return (1041), but not both

• Fiduciary can elect where to take expenses (706 or 1041) - the

so-called Sec. 642(g) election

• Generally, not subject to 2% floor

– Test: would expenses be uncommon (or unusual or unlikely)

for an individual to incur?

• Generally, claim on return with highest tax rate


Non-Deductible Expenses - Sec. 265

• Sec. 265 disallows any deduction attributable to T/E income

• Generally applies to deductions for production of income, usually

trustee’s fees and executor’s fees

• If trust/estate has T/E income, portion of trustee’s and executor’s

fees are nondeductible

• No specific allocation formula

– Fiduciary can use any reasonable method


Non-Deductible Expenses - Sec. 265

Example

FACTS:

• Trust has $30,000 taxable interest and $10,000 T/E interest

• Incurs $20,000 trustee fee

• Portion of trustee fee attributable to T/E income is non-

deductible

$10,000 T/E income

$40,000 Total incomex $20,000 fees = $5,000 non-deductible


Example of a 2011 Fiduciary Income

Tax Return for a Complex Trust


Facts

• Trust provides that 50% of the income must be paid currently to

Will

• During 2011 the trustee makes the following discretionarydistributions:

– 25% of the income to Cam

– 25% of the income to charity

• No reserve for depreciation is required

Question: What type of trust is this and why?


INCOME

Rents 40,000

Tax Int. 30,000

T/E Int 15,000

LTCG 8,000

EXPENSES

Depr/Rental 6,000

R/E Rent Ex 14,000

Tr Fee-Prin 1,000

Tr Fee-Inc 2,000

Char Ded

Exemption

Total


Distribution of Income

Required: 50% to Will

Discretionary: 25% to Cam

25% to Charity


INCOME TAI

Rents 40,000 40,000

Tax Int. 30,000 30,000

T/E Int 15,000 15,000

LTCG 8,000 -

EXPENSES

Depr/Rental 6,000 -

R/E Rent Ex 14,000 (14,000)

Tr Fee-Prin 1,000 -

Tr Fee-Inc 2,000 (2,000)

Char Ded

Exemption

Total 69,000


INCOM E TAI

Rents 40,000 40,000

Tax Int. 30,000 30,000

T/E Int 15,000 15,000

LTCG 8,000 -

EXPENSES

Depr/Rental 6,000 -

R/E Rent Ex 14,000 (14,000)

Tr Fee-Prin 1,000 -

Tr Fee-Inc 2,000 (2,000)

Char Ded

Exemption

Total 69,000

Enter on Form1041, Sch. B,

Line 8


Amount of TAI Received by Each

Beneficiary

Will: 50% x 69,000 TAI = 34,500

Cam: 25% x 69,000 TAI = 17,250

Charity: 25% x 69,000 TAI = 17,250

Total 69,000


INCOM E TAI TI

Rents 40,000 40,000 40,000

Tax Int. 30,000 30,000 30,000

T/E Int 15,000 15,000 -

LTCG 8,000 - 8,000

78,000

EXPENSES

Depr/Rental 6,000 - -

R/E Rent Ex 14,000 (14,000) (14,000)

Tr Fee-Prin 1,000 - (2,471)

Tr Fee-Inc 2,000 (2,000) -

Char Ded (14,206)

Exemption (100)

Total 69,000 47,223


INCOME TAI TI

Rents 40,000 40,000 40,000

Tax Int. 30,000 30,000 30,000

T/E Int 15,000 15,000 -

LTCG 8,000 - 8,000

78,000

EXPENSES


R/E Rent Ex 14,000 (14,000) (14,000)

Tr Fee-Prin 1,000 - (2,471)

Tr Fee-Inc 2,000 (2,000) -

Char Ded (14,206)

Exemption (100)

Total 69,000 47,223

Enter onForm1041,

Page 1,Line 17


INCOM E TAI TI

Rents 40,000 40,000 40,000

Tax Int. 30,000 30,000 30,000

T/E Int 15,000 15,000 -

LTCG 8,000 - 8,000

78,000

EXPENSES


R/E Rent Ex 14,000 (14,000) (14,000)

Tr Fee-Prin 1,000 - (2,471)

Tr Fee-Inc 2,000 (2,000) -

Char Ded (14,206)

Exemption (100)

Total 69,000 47,223


Depreciation Deduction

• No reserve for depreciation

• Depreciation follows accounting income

• All accounting income is distributed to Will, Cam and the charity

• Therefore, the trust is not entitled to deduct any depreciation

• Beneficiaries are entitled to depreciation deduction


INCOM E TAI TI

Rents 40,000 40,000 40,000

Tax Int. 30,000 30,000 30,000

T/E Int 15,000 15,000 -

LTCG 8,000 - 8,000

78,000

EXPENSES


R/E Rent Ex 14,000 (14,000) (14,000)

Tr Fee-Prin 1,000 - (2,471)

Tr Fee-Inc 2,000 (2,000) -

Char Ded (14,206)

Exemption (100)

Total 69,000 47,223


Trustee Fee Allocable to T/E Income

15,000 T/E Income85,000 Gross TAI

x 3,000 Total Tr Fees = 529



15,000 T/E Income

85,000 Gross TAIx 3,000 Total Tr Fees = 529

(529)

2,471Deductible Tr Fees

Non-Deductible


INCOM E TAI TI

Rents 40,000 40,000 40,000

Tax Int. 30,000 30,000 30,000

T/E Int 15,000 15,000 -

LTCG 8,000 - 8,000

78,000

EXPENSES


R/E Rent Ex 14,000 (14,000) (14,000)

Tr Fee-Prin 1,000 - (2,471)

Tr Fee-Inc 2,000 (2,000) -

Char Ded (14,206)

Exemption (100)

Total 69,000 47,223



15,000 T/E Income

85,000 Gross TAIx 17,250 TAI Charity = 3,044

3,044Non-Deductible

Charitable Deduction 14,206


DNI

TI before Dist Ded 47,223

Add: Exemption 100

Add: Net T/E Income 15,000

Less: ND Tr Fee (529)

Less: ND Char Ded (3,044) 11,427

Less: LTCG (8,000)

DNI 50,750

Calculation of DNI


DNI

TI before Dist Ded 47,223

Add: Exemption 100

Add: Net T/E Income 15,000

Less: ND Tr Fee (529)

Less: ND Char Ded (3,044) 11,427

Less: LTCG (8,000)

DNI 50,750

Calculation of DNI

Enter on Form 1041,Sch. B, Line 7


Components of DNI

47.06%RentalIncome

35.29%TaxableInterest

17.65%T/E

Interest100%Total

Gross TAI 40,000 30,000 15,000 85,000

LESS:

Rental Exp (14,000) (14,000)

Tr. Fees (1,412) (1,059) (529) (3,000)

Char Ded (8,118) (6,088) (3,044) (17,250)

Totals 16,470 22,853 11,427 50,750


Application of the Tier System

Will is a FTB - entitled to 50% of the income or $34,500

Cam is a STB - discretionary distribution of $17,250

How do we allocate DNI between FTB and STB???


Now We’ve Got a Problem!!!

FTB Will gets distribution of $34,500

STB Cam gets distribution of $17,250

Total Distributions $51,750

But DNI is only $50,750!!!


The Tier System Solves Our Problem

FTB Will - Receives $34,500; limited toDNI of $50,750

Share of DNI

$34,500

STB Cam - Receives $17,250; limited toremaining DNI: 50,750 less 34,500 or$16,250

$16,250

Total (Equal to DNI) $50,750


The Tier System Solves Our Problem

FTB Will - Receives $34,500; limited toDNI of $50,750

Share of DNI

$34,500

STB Cam - Receives $17,250; limited toremaining DNI: 50,750 less 34,500 or$16,250 $16,250

Total (Equal to DNI) $50,750

% of DNI

67.98

32.02

100


Remember This??? - Components of DNI

47.06%RentalIncome

35.29%TaxableInterest

17.65%T/E

Interest100%Total

Gross TAI 40,000 30,000 15,000 85,000

LESS:

Rental Exp (14,000) (14,000)

Tr. Fees (1,412) (1,059) (529) (3,000)

Char Ded (8,118) (6,088) (3,044) (17,250)

Totals 16,470 22,853 11,427 50,750

Will and Cam get 67.98% and 32.02%,respectively, of each of these items


67.98%Will

32.02%Cam Total

RentalIncome 11,196 5,274 16,470TaxableInterest 15,536 7,317 22,853T/EInterest 7,768 3,659 11,427

Total 34,500 16,250 50,750

Trustee reports theseamounts to Will and

Cam on separate K-1s


67.98%Will

32.02%Cam Total


Total 34,500 16,250 50,750

Will Reports$26,731 of TI


67.98%Will

32.02%Cam Total


Total 34,500 16,250 50,750

Cam Reports$12,592 of TI


But . . Aren’t We Missing Something???

WillReports

CamReports

$26,731 $12,592Taxable Income


YES! - Depreciation

WillReports

CamReports


Depreciation (3,000) (1,500)

Net Taxable Income $23,731 $11,092


Where’s the Other $1,500 of Depreciation?

WillReports

CamReports


Depreciation (3,000) (1,500)

Net Taxable Income $23,731 $11,092

It is Allocated to Charity and is Wasted!!!


67.98%Will

32.02%Cam Total


Total 34,500 16,250 50,750

The DistributionDeduction is $39,323


Trust’s Taxable Income

TI Before Dist Deduction $47,223

Distribution Deduction $39,323

Taxable Income $7,900

The taxable income is the LTCG less the $100 exemption


Trust’s Taxable Income

TI Before Dist Deduction $47,223

Distribution Deduction $39,323

Taxable Income $7,900

The taxable income is the LTCG less the $100 exemption

Report onForm1041,

Page1,Line22


Summary

• Compute TAI

• Figure Distribution Beneficiaries Get

• Calculate Taxable Income

– Allocate Depreciation

– Allocate Expenses to T/E Income

• Calculate DNI

• Apply Tier System

– Allocate DNI

• Send K-1s to Beneficiaries

• Complete 1041

Thank God for Tax Software!!!


Summary

• Trust or estate is a separate taxable entity

• Income is taxed to either to estate/trust or beneficiary

• Concept of “distributable net income” (DNI) determines

– Amount of distribution deduction

– Amount included in beneficiary’s income

– Character of income

• DNI affected by

– Tier system of allocating DNI

– Separate share rule

– 65 day rule

– Section 663(a)(1) for specific bequests

• This stuff is really complicated


Resources

• Federal Income Taxation of Estates, Trusts and Beneficiaries, 3rd

Edition by Ferguson, Freeland and Ascher (Aspen/CCH)

• 1041 Deskbook (Practitioners Publishing Co)

• Income Taxation of Trusts and Estates, 852-3rd (BNA portfolio –

Estate, Gift and Trust series)

• Federal Income Taxation of Decedents, Estates and Trusts, 23rd

Edition (Nov. 2007) (CCH)

• Federal Income Taxation of Trusts and Estates, by Zaritsky and

Lane, 3rd Edition (RIA/Thompson/West)

• Income Taxation of Fiduciaries and Beneficiaries by Abbin, 2

volumes, 2010 Edition (CCH)

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Vermont Bar Association

ATTORNEY CERTIFICATE OF ATTENDANCE

Please note: This form is for your records in the event you are audited Sponsor: Vermont Bar Association Date: August 14, 2012 Seminar Title: Understanding Fiduciary Income Taxation for Estate Planners, Part 1 Location: Teleseminar Credits: 1.0 General MCLE Luncheon addresses, business meetings, receptions are not to be included in the computation of credit. This form denotes full attendance. If you arrive late or leave prior to the program ending time, it is your responsibility to adjust CLE hours accordingly.

VT Bar Association Continuing Legal Education Registration Form

Please complete all of the requested information, print this application, and fax with credit info or mail it with payment to: Vermont Bar Association, PO Box 100, Montpelier, VT 05601-0100. Fax: (802) 223-1573 PLEASE USE ONE REGISTRATION FORM PER PERSON. First Name: _____________________ Middle Initial: _____Last Name: __________________________

Firm/Organization:____________________________________________________________________

Address:___________________________________________________________________________

City:__________________________________ State: _________ ZIP Code: ______________

Phone #:________________________ Fax #:________________________

E-Mail Address: ____________________________________________________________________

I will be attending:

Understanding Fiduciary Income Taxation

for Estate Planners, Part 2 Teleseminar

August 15, 2012

Early Registration Discount By 08/08/2012 Registrations Received After 08/08/2012

VBA Members: $70.00 Non VBA Members/Atty: $80.00

VBA Members: $80.00 Non-VBA Members/Atty: $90.00

NO REFUNDS AFTER August 8, 2012

PLEASE NOTE: Due to New Hampshire Bar regulations, teleseminars cannot be used for New Hampshire CLE credit

PAYMENT METHOD:

Check enclosed (made payable to Vermont Bar Association): $________________ Credit Card (American Express, Discover, MasterCard or VISA) Credit Card # ________________________________________Exp. Date_______ Cardholder: ________________________________________________________

Vermont Bar Association

ATTORNEY CERTIFICATE OF ATTENDANCE

Please note: This form is for your records in the event you are audited Sponsor: Vermont Bar Association Date: August 15, 2012 Seminar Title: Understanding Fiduciary Income Taxation for Estate Planners, Part 2 Location: Teleseminar Credits: 1.0 General MCLE Luncheon addresses, business meetings, receptions are not to be included in the computation of credit. This form denotes full attendance. If you arrive late or leave prior to the program ending time, it is your responsibility to adjust CLE hours accordingly.

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