Mastering GST Elections and Reporting: Minimizing Generation-Skipping Transfer Tax Through Indirect Skips

A significant and often complex challenge for estate advisers and compliance professionals is navigating the GST tax rules. Quite often, a taxpayer will transfer property to a "skip person" inadvertently. Then, the tax adviser discovers the transfer when a tax return is due, or in many cases, does not discover the transfer until after the due date by which GST reporting was required. There are, however, several elections available to taxpayers that may mitigate some GST tax.

In addition to identifying transfers to a skip person or a trust for the benefit of a skip person, tax advisers need to know how much of the taxpayer's GST exemption has been used and calculate exemption allocations for GST purposes on Form 709. Advisers must also understand when to opt out of the automatic allocation rules and contemplate making a reverse QTIP election. In addition, understanding the process for obtaining Section 9100 relief to allocate GST exemptions can provide crucial benefits to taxpayers caught up in the GST regime.

Listen as our experienced panel provides practical guidance on allocating GST exemptions and on the elections available to tax advisers and compliance professionals to minimize the tax impact of GST tax.

1. GST exemption and calculating inclusion ratios
2. Timely allocation rules:
   • At death
   • Direct skips during life
   • Indirect skips during life
     • GST trusts defined
     • Automatic allocation rules
     • Opting out of automatic allocation
3. Estate tax inclusion period rule
4. Nontaxable gifts to skip persons
5. Late and retroactive allocations
6. Changes in inclusion ratios and qualified severance rules

The panel will discuss these and other important topics:

• Elections and strategies to minimize or avoid GST tax
• Methods for allocating GST exemption
• Calculating inclusion ratios on GST transfers into trusts
• How and when to opt out of automatic allocations to direct skip persons

Learning Objectives

After completing this course, you will be able to:

• Distinguish between direct skip persons and indirect skip persons
• Identify transfers that are subject to GST tax
• Determine when opting out of the automatic allocation of GST exemption is a beneficial strategy
• Recognize language to include in GST-exempt trusts

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience at mid-level within the organization, involved in estate planning and structuring trusts to meet client wishes and to mitigate tax impact, preparing complex tax forms and schedules, supervising other planners or attorneys. Specific knowledge of Form 709 Gift Tax completion; familiarity with Section 2611 Generation Skipping Transfer regulations

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).