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800-404-7438
 
Home > Taxation > Income Tax Issues in Estate Planning
Prerequisite
Overview of Federal Income Tax
Knowledge Level
Intermediate
Copyright 2007

Publication Date
December, 2007
Income Tax Issues in Estate Planning
Introduction Organization Learning Objectives Author Bios

Title: Income Tax Issues in Estate Planning (in cooperation with the Tulane Law School 56th Annual Institute on Federal Taxation)
Prerequisite: Overview of Federal Income Taxation or comparable knowledge/experience
Advance Preparation: None
Knowledge Level: Intermediate
Subject Matter Area: Taxes
Date of Publication: December 2007
Copyright © 2007 by Bisk Education, Inc. All rights reserved.
Recommended CPE Credits: 3 QAS/Registry (50-minute hour)
Expiration Date: One year from date of receipt to complete program and submit quizzer to obtain credit
Passing Grade for Quizzer: 70 percent or higher


Income tax issues routinely arise in the planning and administration of estates and trusts. Such issues are often overlooked, however, in situations where saving transfer taxes is the focus of the planning. Also, although usually well-versed in income tax matters, many CPAs are unfamiliar with issues raised herein because they seldom arise in the accountant’s practice (e.g., issues unique to the final Form 1040). The purpose of this program is to raise awareness as to certain selected income tax issues that may be encountered in a trust and estate practice.

This program includes expert analysis by Theodore B. Atlass on audio.


This program is divided into eight (8) chapters.

Chapter 1 identifies the factors that have affected the taxpayer’s ability to shift income as well as the income tax effects of giving and receiving noncharitable gifts, including the resulting basis of the property gifted.

Chapter 2 discusses the income tax effects of transactions between related parties, including sales, IRC §1031 exchanges, gifts, guarantee of loans, and transfers of life insurance for value.

Chapter 3 takes a look at tax planning strategies for the dying client, including how to maximize income tax savings when making gifts and structuring business and property interests.

Chapter 4 covers the process of handling tax returns for a decedent, including such topics as the fiduciary relationship, the liabilities of parties involved, as well as applicable statutes of limitations.

Chapter 5 addresses the issues and considerations relating to the decedent’s final income tax return, including the appropriate tax treatment of items commonly found on a decedent’s final Form 1040 as well as the tax concerns of the surviving spouse.

Chapter 6 explains how the property included in the decedent’s gross estate is valued for basis and estate tax purposes.

Chapter 7 categorizes deductions by the appropriate tax return on which they are allowed.

Chapter 8 considers the income tax effects of different types of distributions from the estate as well as simple and complex trusts, such as specifically gifted assets, formula and nonformula pecuniary gifts, fractional share and residuary gifts, and in-kind distributions.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user’s comprehension of the material and highlight important practical considerations, this program includes the following designations:

A Biskplan offers a strategy/discussion point when a practitioner is faced with a particular issue or situation.

A Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner’s organization.


Upon successful completion of this program, the user should be able to analyze the various income tax issues that often arise in the estate planning process, including income tax consequences of noncharitable gifts and related party transactions, the administration of back income tax returns after death, the decedent’s final Form 1040, basis adjustments at death, taking deductions on the proper return, and the impact of distributions to beneficiaries.



    Theodore B. Atlass is the founding member and Principal of the Denver, Colorado law firm Atlass Professional Corporation. He specializes in areas of taxation; estate planning and probate; closely held business estate planning; charitable trusts and private foundations; and trust and estate litigation. He is a Fellow of the American College of Trust and Estate Counsel and a former Chair of its Fiduciary Income Tax Committee and a Fellow of the American College of Tax Counsel. He earned his JD at DePaul University and his LL.M in Estate Planning from the University of Miami.

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