We hear about trusts all the time – many different types of trusts – for tax reasons, but also for non-tax reasons. Many transactions and trusts can save and avoid estate taxes. However, some can save and avoid income taxes as well. In this do not miss event, Ed Morrow and Paul Hood present on the BDOT and BDIT – the Beneficiary-Deemed-Owned Trust (BDOT) and the Beneficiary Defective Inheritor’s Trust (BDIT). When we have heard about these trusts, to some, they are too good to be true. To some they seem to offer the best of all worlds. So, what is the real story behind these two types of trusts?

While versions of the BDIT and BDOT have been around for many years, we have heard more about them in recent years. In today’s landscape of estate taxes, high exemptions, and high-income tax states, the benefits of the BDIT and BDOT can be more attractive than ever before! However, in their current form and version, they are relatively recent developments among estate planning techniques and strategies. They have some characteristics similar to an Intentionally Defective (Grantor) Irrevocable Trust (IDGIT), but there are also potential features, advantages, and benefits unlike anything we have seen before. Are they the greatest thing to come along? Are they the answer to many planner’s and client’s problems and concerns? Do they work? Come here the experts teach us the basics, how they work, what and where the concerns are, and best practices. When used properly, the BDIT and BDOT can be very powerful!

During this exclusive LISI webinar, Paul and Ed will cover:

1. Background of Fiduciary Income Taxation: Income Tax in Estate Planning
2. Basics of IRC Sec. 678 – powers over income or corpus shifting tax burden
3. Understanding Varying Definitions of “Income” in Subchapter J
4. IRC Sec. 671 and the “Portion” Rules
5. Comparisons of non-grantor trust v. grantor trust scheme; incl. §199A
6. Effect of Current, Lapsed Withdrawal Powers for:

              a) estate/gift tax under IRC Secs. 2041/2514;

              b) crafting the power and lapse in light of 5/5 lapse protection

              b) spousal elective share; asset protection; bankruptcy

7. Techniques to improve asset protection – better than discretionary?
8. Tax effect of amendments, reformation, decanting to add IRC Sec. 678 powers
9. Income Tax Effect of Lapse – is it a “partial release” for IRC Sec. 678(a)(2)?
10. Contrasting BDOTs with BDITs – including installment sale issues
11. Contasting BDITs with IDGITs

Don’t miss this compelling webinar!!!

 

 

There will be no CE for this webinar


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