Thought Leader Series: Using Powers of Appointment for Income and Estate Tax Minimization and Asset Protection Purposes

WHAT WE’LL COVER

We’ll address these issues:

Where to find the law on powers of appointment and why the Uniform Power of Appointment Act coming to a state near you may adversely modify centuries of common law in this area.
Using lifetime limited and general powers of appointment to shift income tax - and avoid compressed brackets and surtaxes.
Using formula testamentary general powers of appointment to target the most advantageous assets to receive a step up in basis.
Using “upstream” powers of appointment to shift income tax burden and/or estate inclusion and basis step up to parents/grandparents.
Techniques to limit undesirable powers of appointment without curbing the beneficial income tax and/or estate tax effects.
What are the effects of powers of appointment only exercisable with consent of adverse or non-adverse parties for state law, bankruptcy, rule against perpetuities, estate/gift/GST tax?
When does exercising a lifetime limited power of appointment trigger gift tax, and if so, for how much?
When does exercising a testamentary limited power of appointment trigger estate tax, and if so, for how much? How can we avoid inadvertent triggering of the Delaware Tax Trap while affirmatively triggering it only when beneficial and for targeted assets?
When should a trustee be wary that a lien could apply to the exercise of a power?
When is a power exercisable only by Will? Should it be? Does this require probate of the Will? What are the rules if it is exercised by a Trust?
Which state’s laws apply to the power – the situs of the trust or the residency of the powerholder?

CLE:
1.0 credits
States Pre-Approved: AR, CA, MO, NJ, NY, OH, OK, PA, TX, UT, VT (AK, AZ, CT, NH eligible to claim credit)
States Pending Approval: GA, IL, KS, NC, TN

CFP:
1.0 credits pending (National CFP Board)

CPE:
Program Knowledge Level: Intermediate
Delivery Method: Group Internet-Based
Recommended CPE Credit: 1.0
Field of Study: Taxation
Prerequisites: JD
Advance Preparation: None
Review Date: 2/12/2022

NOTE: For accurate records, each employee in an organization must register individually for CLE attendance reporting and audit. Additionally, if multiple people from an organization (who have individually registered) would like to view together under one employee's registration and login, please send a list of those individuals along with the verification code(s) to cle@wealthcounsel.com, so their attendance is marked accordingly.

In order to be awarded the full credit hours, you must be present during the entire program.

WealthCounsel LLC 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 credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. NASBA Sponsor ID 108255. We have registered with the Texas State Board of Public Accountancy as a CPE sponsor. This registration does not constitute an endorsement by the Board as to the quality of our CPE program. Texas State Board Sponsor ID 9610.

For information on refunds, concerns, and program cancellation policies, please contact our offices at 888-659-4069, ext 818 or memberservices@wealthcounsel.com.