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Heard at Heckerling- Day 2

January 11, 2017
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Read our notes from Heard at Heckerling- Day 1 here.

Another full day at Heckerling, with eight separate sessions covering planning ideas and pitfalls. Today covered the full gamut of trusts and some partnership planning issues—new thoughts, technical issues, and down-to- earth, practical, but critical ideas. A few highpoints in both areas:
 
Trusts
  • We’re seeing more IRS audits of GRATs. Make sure you are carefully observing all requirements of the GRAT document– particularly respecting and enforcing the THE ANNUITY PAYMENTS! Carlyn McCaffrey of McDermott Will & Emery LLP gave some tips for getting the most of this planning tool.
  • Gideon Rothschild of Moses & Singer LLP reminded us that trusts are not just for tax avoidance. He laid out some great planning ideas for protecting assets – particularly from greedy, soon to be former in-laws.
  • There were some great suggestions for protecting your clients, both the elderly individual and the trustee.
  • Keep an eye on the various laws governing your client’s qualified plan-- both state and federal. This is especially important when advising clients with second marriages and blended families. You need to understand the client’s intentions and make sure the planning documents achieve that intent. Don’t get tripped up!
The real practical take away here is that trust planning for non-tax family or business reasons continues despite the uncertainty in the transfer tax arena we addressed yesterday.
 
Partnerships and LLCs
 
N. Todd Angkatavanich of Withers provided a detailed roadmap for some fascinating transfer opportunities using Preferred Partnership Freezes. These freezes are an often overlooked tool allowing a partnership or LLC to be broken into two classes of ownership; one providing a fixed return (the freeze) and the other absorbing the growth of the entity. They are useful for classic estate freeze motivations as well as separating risky, hi-yield investments from lower return more stable assets.
 
Watch here for our detailed summary of these and all of the great Heckerling sessions. And, of course, we will be ready with the most up to date information to assist you when we return. Please reach out your Citrin Cooperman advisor if you have any questions.