In this webinar, presenter Edwin Morrow will explain powers of appointment and their uses in estate planning, including the following: 

• How to differentiate trustee and fiduciary powers from nonfiduciary powers of appointment, and how to recognize them
• How to best exercise powers of appointment and the dangers of appointing to revocable trusts
• How lifetime powers of appointment can be used to shift income tax liability and avoid compressed tax brackets, including how beneficiary deemed owner trusts (BDOTs) work
• When such powers can affect see-through trust status (and when they don’t) for trusts receiving individual retirement accounts after the Secure Act
• How targeted and formula testamentary powers of appointment can be used to achieve a step up in basis for the most advantageous assets at death, without causing estate tax to be due
• How upstream powers of appointment can be used to achieve a step up in basis step at a parent’s or grandparent’s death, and how to avoid the risks with such strategies
• How powers of appointment that require the consent of another party affect a client’s exposure under state law and bankruptcy law and to estate, gift, and generation-skipping transfer taxes
• Issues with adding such powers via decanting or court reformation to pre-existing irrevocable trusts