Estate Planning & Administration Considerations for LLCs
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Limited Liability Companies (LLCs) are commonly used in estate planning, but the transfer and administration of LLC interests after death present unique legal and tax challenges. Proper planning is essential to ensure a smooth transition of ownership, avoid unnecessary tax burdens, and maintain business continuity.
This course explores key estate planning and administration issues related to LLCs, including the transfer of LLC interests at death, updating management roles, gift and estate tax implications, cost basis adjustments, and post-death income tax considerations. Participants will gain insight into partnership taxation rules, the impact of elections such as Section 754, and best practices for structuring LLC agreements to facilitate seamless estate administration.
Ideal for tax and estate planning professionals, this course provides practical strategies for effectively incorporating LLCs into an estate plan while minimizing tax liabilities and administrative complications.
Publication Date: November 2025
Topics Covered
- Overview of Limited Liability Companies
- Estate Planning with LLC Interests
- Managing Deceased or Disabled Members' Interests
- Transferring an Interest After Death
- Reporting LLC Income Post-Death
- ESBT and QSST Elections
- Post Death Sales of Membership Interests vs. Sale of Assets
Learning Objectives
- Explain the process for transferring LLC interests at death and the legal and tax implications for heirs and beneficiaries
- Explain the steps required to update LLC management and maintain business continuity after the owner’s death
- State gift and estate tax considerations related to LLC ownership transfers, including valuation and tax planning strategies
- Identify the impact of cost basis adjustments on LLC interests and opportunities to minimize tax liabilities
- State post-death income tax concerns for LLCs, including partnership taxation rules and Section 754 elections
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
