Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 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
The death of the majority shareholder or partner in an entity presents its own challenges in estate planning and administration. In this presentation practitioners will learn how entity ownership passes upon the death of the owner and the estate tax and income tax considerations that must be analyzed before and after the death. Participants will also learn how to establish control over the entity when the managing owner passes away and options for transferring, liquidating, or continuing the entity after death. This course is best suited for practitioners working with clients after a death has occurred. Partnership and corporate tax concepts will be discussed briefly but are not the main subject of this course.
Publication Date: August 2022
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Types of entities and ownership and management structures
- Regaining control of an entity at death or disability of managing owner
- Examples of common transfer restrictions placed on ownership interests
- Considerations when reporting business interests for estate tax and fiduciary income tax purposes
- Basis adjustment rules relating to entity ownership interests
- Benefits of making a 754 election for a partnership
- How business owners can plan streamline the transition process at their death
Learning Objectives
- Describe the importance of planning for the death of a managing shareholder or partner
- Identify the basis adjustment differences between partnerships and corporations
- Identify transfer restriction provisions and how to accomplish transfers upon death
- Recognize and analyze the tax savings that can be achieved by adjusting the tax basis at death
- Recognize how to recommend estate planning techniques to streamline the transfer of control at death
- Recognize the most common types of partnership
- Describe the best method for updating information with the IRS after the death of a majority shareholder
- Identify when lack of control discounts are typically used
- Recognize when the income distribution deduction applies
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.