Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 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
Income in respect of a decedent (IRD) defines a category of assets includable in the decedent’s taxable estate but which the decedent has not yet received. In addition to the estate tax consequences, IRD received after the taxpayer passes away is taxed differently from most of the decedent’s other assets. While the most common types of IRD include annuities, retirement plans, and final wage payouts; there are many other less readily identifiable types of IRD. In this course you will learn how to define IRD, determine when IRD is includable in the gross estate, and identify who must report IRD as taxable income.
Publication Date: May 2021
Designed For
Attorneys, CPAs, Enrolled Agents
Topics Covered
- What is Income in Respect of a Decedent (IRD)
- How IRD today differs from IRD in prior years
- IRD for Estate Tax Purposes (Form 706)
- IRD for Income Tax Purposes
- Examples (and more examples) of Types of IRD
- Deductions in Respect of a Decedent
- Transferring IRD
- Planning Now for IRD
Learning Objectives
- Describe the difference between IRD and non-IRD assets of the estate
- Identify potential deductions in respect of a decedent
- Recognize and analyze the potential tax impacts related to IRD assets
- Recognize how to recommend tax planning to clients who own IRD assets
- Identify the tax impact on an estate or beneficiary receiving an IRD asset
- Describe which income tax problem the modern day IRD reporting rules were intended to fix
- Recognize what type of income the payments to a beneficiary on a promissory note inherited from a decedent will be characterized
- Recognize which types of IRD are not related to the decedent's personal services
- Identify which date is not important when analyzing IRD related to stock dividends
- Recognize under which conditions estate or beneficiary receiving IRD can claim the IRD deduction
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.