Guide to Estate and Gift Taxation - Part II
Field of Study:
This is Part II of a two part course. The presentation integrates federal taxation with overall financial planning. The course will explore tax strategies relating to the
central financial tactics of wealth building, capital preservation, and estate distribution. The result is a unified explanation of
tax-economics that will permit the tax professional to locate, analyze, and solve financial concerns. Designed to improve the quality
of services to clients and the profitability of engagements, this program projects the accountant into the world of financial planning.
This course will give the participant practice in analyzing problems, developing solutions, and presenting final personal financial
plans to clients.
The course surveys wills, living trusts, gifts, marital property, and probate avoidance. Will and trust forms are explored along with
living wills, durable powers of attorney, and nominations of conservator. Designed to eliminate estate problems and death taxes, the
emphasis is on practical solutions that are cost effective.
Guide to Estate and Gift Taxation - Part II covers chapters 11 through 18 of the course material.
After completing this course you will be able to:
- Specify types of wills noting functions a will can perform, identify types of bequests, determine the duties of executors and guardians, and recall ways to hold title and their tax ramifications.
- Identify advantages of a properly drafted will, determine the distribution flow of simple wills, and specify the pros and cons of probate proceedings.
- Identify the relationship of parties in a trust, reasons to establish a trust, and types of trusts noting their estate planning function.
- Specify recommended living trust provisions, identify the application of gift and income tax including the use of a grantor trust and an unlimited marital deduction, and determine what constitutes an “A-B” and “A-B-C” trust format.
- Recognize basic tax and legal title formats noting the advantages and disadvantages of holding property in a sole proprietorship, a corporation, or an S corporation .
- Identify the title holding benefits of trusts, co-tenancy, partnerships, and limited liability companies and the tax characteristics of each, recognize the types of retirement plans used to provide lifetime benefits to a business owner and to employees, and specify the tax treatment of custodianships and a probate estate.
- Specify persons in which rights are placed by life insurance and reasons to purchase life insurance.
- Identify the tax treatment of life insurance proceeds.
- Determine the pros and cons of life insurance policy types and specify estate tax planning reasons for establishing an irrevocable life insurance trust.
- Recognize the differences between deferred annuities and private annuities and determine what constitutes an entity purchase agreement and a cross purchase agreement noting tax and legal advantages.
- Identify reasons why a business interest must be valued in an estate that is subject to federal estate tax, specify factors used to determine the net value of a business under the regulations, and recall the valuation factors in R.R. 59-60 noting their impact.
- Determine how tangible assets are normally valued identifying those assets whose valuation is based on values other than book value, and specify the steps in R.R. 68-609’s valuation formula for intangible assets noting the effect such amount can have on the total value of a business.
- Identify special business valuation issues including redemptions under §303.
- Determine the tax consequences in leaving an estate to a surviving spouse, specify the elements of buy sell agreements, stock redemptions, and stock recapitalizations in order to dispose of business interests before death, and identify deferred compensation agreements noting their estate planning impact.
- Determine the benefits of an estate freeze and its ability to reduce the value of a business interest, identify transactions to which Chapter 14 rules apply and terminology used in the Chapter 14 valuation rule that applies to corporations and partnerships, and specify exceptions to §2701.
- Identify the “zero value” rule under §2701.
- Determine the application of §2701 provisions.
- Recall the terms used in §2702 concerning transfers of interests in trust, identify the application of the zero value rule to a transfer of interest in trust, and specify exceptions to §2702, determine the transfer of an interest in property when there is one or more term interests as a transfer of an interest in a trust, and specify the treatment of joint purchases.
- Recognize the requirements and exceptions of §2703 to insure property is valued appropriately, identify lapses as a transfer by gift or as includible in the decedent’s gross estate under §2704, recall the key terminology of §2704 under the evaluation rules, specify the amount of the transfer noting which lapses or restrictions qualify as an applicable restriction.
- Recall estate management techniques for the elderly and disabled.
- Cite the eldercare benefits of Medicare, Medicaid, and Supplemental Security Income, identify disadvantages of the Medicaid program noting how to determine income into asset groups, specify the dangers and benefits of gifting to family members, including how individuals might use private insurance on catastrophic illness.
- Identify tools that can allow patients to refuse treatment even when incompetent, determine Supplemental Security Income noting how it relates to elderly and disability planning, and specify the requirements that must be met in order to receive disability benefits.
- Determine post-mortem estate planning action in the face of funeral and administrative expenses using elections and disclaimers.
- Cite the due dates of post-mortem federal forms, specify the filing requirements of a decedent’s estate tax return, and identify exceptions to the general rule of estate tax payment.
- Determine the processes and procedures necessary in preparation and filing of the Form 706.
- Identify the filing requirements for estate income tax and decedent’s final income tax returns
- Determine total income be included on the decedent’s final income tax return using available exemptions or deductions.
- Identify how to avoid penalties when filing a gift tax return, recognize gift splitting to reduce gift taxes, and recall special gift applications and traps noting ways to avoid their tax consequences.
Completion of course #92521, Guide to Estate and Gift Taxation
Type of Delivery Method:
Recommended CPE Credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and the final examination.
Refunds and Cancellations:
A full refund will be given if the customer submits a request by email within 15 days of purchasing the course by using the "Contact Us" link on the left side of the web page. We will appreciate if the customer provides a reason. However, no refund will be granted after the qualified assessment (Final Test) has been completed. Customers can submit their complaints or concerns by using the "Contact Us" link.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org