Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits
The Gift and Estate Tax Exemption is at an all-time high, but the eventual decrease is on the horizon. Clients are beginning to realize the importance of making significant gifts to ensure they can use the temporarily increased exemption before they lose it.
In this deep dive into gift tax we will examine key valuation issues, transfers to trusts, and estate inclusion risks. We will also analyze opportunities for protecting current and prior gifts from generation skipping tax, adequate disclosure issues, gifting of partnership interests, intentionally defective grantor trusts, and Crummey Trust best practices.
Publication Date: February 2022
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Review of current gift and estate tax exemption rules
- Gift tax filing requirements
- Gifting valuation issues and adequate disclosure rules
- Nuances of gift splitting
- Examples of best practices for Crummey Trust transfers
- Gifting during the temporary exemption increase
- Portability and post-death gifting by spouse
- Analysis of generation skipping tax reporting
- Intentionally defective grantor trusts
- Non-traditional gifting opportunities
Learning Objectives
- Describe the gift tax filing requirements
- Recognize the importance of gifting under the increased exemption rules
- Identify opportunities to maximize generation skipping tax savings
- Recognize and analyze the proper valuation and disclosure of a gift
- Recognize how to recommend nontraditional gifting opportunities to clients
- Describe who pays income tax on interest and dividends earned by the trust during the taxpayer's lifetime
- Identify exceptions to the imputed interest rules for gift loans
- Recognize the trust that has no basis adjustment at death of grantor
- Identify the 2022 annual gift tax exclusion
- Identify the 2022 lifetime credit
- Recognize a situation in which a gift tax return would be required for 2022
- Recognize the IRS Form used to request an automatic 6-month extension for the gift tax return only
- Identify the "gold standard" with respect to real estate fair market value
- Identify the primary benefit of gift spliting allowed to couples
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.