Planning for the Death of the Majority Shareholder
Date: Monday, April 21, 2025
Instructor: Klaralee R. Charlton
| Begin Time: |
1:00pm Pacific Time
2:00pm Mountain Time
3:00pm Central Time
4:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
2 hours Estate Planning for CFP |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
The death of a majority shareholder or partner in a business entity presents unique challenges in estate planning and administration. This course provides practitioners with a comprehensive understanding of how entity ownership transfers upon an owner’s passing, as well as key estate and individual income tax mitigation strategies for clients to implement before and after death. Participants will learn options for establishing control when a managing owner dies and explore ideas for transferring, liquidating, or continuing the entity. While partnership and corporate tax concepts will be briefly covered, they are not the primary focus of this course. This session is best suited for professionals assisting clients after a business owner’s death.
Who Should Attend
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Types of Business Entities and Their Ownership and Management Structures
- Strategies for Regaining Control of an Entity After the Death or Disability of a Managing Owner
- Common Transfer Restrictions on Ownership Interests and Their Impact
- Key Considerations for Reporting Business Interests for Estate Tax and Fiduciary Income Tax Purposes
- Basis Adjustment Rules for Entity Ownership Interests
- Advantages of Making a Section 754 Election for Partnerships
- Estate Planning Strategies for Business Owners to Streamline Ownership Transitions
Learning Objectives
- Explain the importance of planning for the death of a managing shareholder or partner
- Differentiate between basis adjustments in partnerships and corporations
- Identify transfer restriction provisions and strategies for facilitating ownership transfers upon death
- Analyze tax-saving opportunities related to basis adjustments at death
- Recommend estate planning techniques to streamline the transfer of control
- Describe the most common types of partnerships and their implications in estate planning
- Determine the best method for updating IRS records after the death of a majority shareholder
- Recognize when lack-of-control discounts are typically applied
- Identify situations where the income distribution deduction applies
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of estate planning and administration.
Advance Preparation
None
