Navigating Tax Reform Changes and Pass-Through Income Deductions
Lou Vlahos will be a presenter at this Strafford Publications webinar.
This CLE webinar will provide estate planning counsel and advisers with a practical guide to using S corporations in estate and wealth transfer plans. The panel will detail the impact of changes made to pass-through entities apply to Qualified Subchapter S Trusts (QSSTs) and Electing Small Business Trusts (ESBTs), and will discuss drafting techniques for both new and existing grantor and non-grantor trusts.
Using trusts to hold S-corporations can have significant tax advantages, and recent changes enacted as part of the new tax reform law have expanded potential benefits while increasing complexity to trust structures. Choosing which trust to use requires an assessment of the grantor’s planning needs and the potential tax consequences in light of the new regulations.
S-corporations are bound by very specific rules that can significantly affect an estate plan. Estate planning counsel must be able to implement effective planning techniques while maintaining the corporation’s all-important S-election, which can prove to be a delicate endeavor. Termination of the S status would be disastrous to clients.
The tax reform bill passed at the end of 2017 provides a deduction for pass-through income which Congress has extended to trusts and estates holding pass-through entities. However, applying the deduction to QSSTs and ESBTs will provide complex challenges to planners and compliance professionals alike.
Listen as our distinguished panel provides techniques for drafting the various types of S corporation trusts, including grantor, testamentary, QSSTs and ESBTs. The panelists will discuss the impact of tax reform changes to pass-through income provisions on S corporation trusts.
The panel will review these and other key questions:
What S-corporation trust drafting techniques should be implemented to maintain advantageous tax attributes? What considerations should be made when evaluating and selecting trusts that are allowed to own S-corporation stock? How does the new pass-through deduction apply to ESBTs, QSSTs and other trusts holding S Corporation stock? What other provisions in the 2017 tax reform bill will impact S corporation trusts? Outline:
S-corporation trusts Grantor trusts Testamentary trusts Qualified Subchapter S trusts Electing small business trusts Applicability of 2017 tax reform law pass-through provisions to S Corporation trusts Interest expense