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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Wednesday, October 19, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

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

$197.00
CPE
ALL

This course will review qualified terminable interest property (QTIP) elections, including the reverse, partial, Clayton, and the interplay of the QTIP election with the DSUE. Our trust and estate tax expert will explain how to utilize QTIP elections to maximize taxpayers' federal estate tax and GST exemptions and report each election on the appropriate returns.

Faculty

I. Richard Ploss
Counsel
Porzio Bromberg & Newman P.C.

Mr. Ploss is a member of the firm's Trusts and Estates Department. He concentrates his practice primarily on estate planning for high net worth individuals and their businesses, estate administration, probate litigation and fiduciary income taxation in New Jersey and throughout the East Coast.  He has extensive experience advising individual clients in the areas of wealth transfer planning and the preparation of estate planning documents. He is a Certified Public Accountant (CPA) in the state of Georgia, a Certified Financial Planner (CFP) and a Professional Registered Trust and Estate Practitioner.  He frequently publishes articles and speaks on trust and estate matters and currently serves as an Adjunct Professor, teaching Trusts & Estates at the University of Maine Law School.  

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Description

Assets qualifying for the marital deduction do not utilize the federal estate tax exemption at the death of the first spouse. Trusts holding QTIPs trusts can also take advantage of this unlimited marital deduction if timely appropriate election is made. Once made on the appropriate tax return, the election is also irrevocable.

Before portability, trusts were structured to use up the exemption of the first to die since otherwise, the first spouse's exemption would be wasted. Trust and estate professionals have new considerations now that spouses can port their estate tax exemptions.

In addition to federal estate and gift tax considerations, advisers must also consider the QTIP election on a donor or decedent's federal generation-skipping transfer tax ("GSTT") exemption. Although one can port the estate tax exemption to a decedent's surviving spouse, a decedent's unused GSTT exemption cannot be ported. A reverse QTIP election allows the first spouse to utilize the applicable portion of their GST exemption. Estate and gift tax professionals must thoroughly understand the available QTIP elections to preserve taxpayers' exemptions and save significant tax dollars.

Listen as I. Richard Ploss, Counsel at Porzio, Bromberg & Newman explains the various QTIP elections and how and when each should be made.

Outline

  1. Qualified terminable interest property: introduction
  2. QTIP trusts as an effective estate planning technique
  3. How to qualify for QTIP treatment
  4. Elections
    • QTIP election and the DSUE
    • Partial
    • Clayton QTIP Election
    • Reverse QTIP Election
  5. QTIP trusts and the non-citizen spouse
  6. Other uses of QTIP trusts
  7. Reporting the QTIP trust
    • Form 709
    • Form 706

Benefits

The speaker will cover these and other critical issues:

  • When and how a spouse should make a QTIP election on Form 706, U.S. Estate and GST Tax Return
  • Coordinating the benefits of portability with a QTIP election
  • Making a reverse QTIP election to utilize a taxpayer's GSTT exemption
  • How to report qualified terminable interest property on Schedules M and RO of IRS Form 706
  • Which trusts qualify as QTIP trusts?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify the qualifications for making a QTIP election.

  • Discern which trusts qualify as QTIPs.

  • Determine how to calculate DSUE amounts.

  • Establish whether portability elections are beneficial.

  • Decide whether to use the GST exemption.

  • Decide whether reporting of DSUE on Forms 706 and 709 for a surviving spouse is correctly done.

  • 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, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of estate and trust taxation, estate income tax returns, qualified terminable property trusts (QTIPs), portability elections, the deceased spousal unused exclusion (DSUE), QTIP elections, gift taxes and generation skipping taxes; familiarity with GST allocations and Forms 706 and 709.

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).