Planning for the Death of the Majority Shareholder
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
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 course is best suited for professionals assisting clients after a business owner’s death.
Publication Date: April 2025
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Entity Structure Overview
- Management at Death or Incapacity
- Transferring Interests at Death
- Transfer Restrictions
- Fiduciaty Income Tax Issues
- Basis Adjustments and Sales
- Plannng for Future Transfers
Learning Objectives
- Explain the importance of planning for the death of a managing shareholder or partner
- Explain how to differentiate between basis adjustments in partnerships and corporations
- Identify transfer restriction provisions and strategies for facilitating ownership transfers upon death
- Identify tax-saving opportunities related to basis adjustments at death
- Identify estate planning techniques to streamline the transfer of control
- Identify the most common types of partnerships and their implications in estate planning
- Explain how to 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
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of estate planning and administration.
Advance Preparation
None
