Using Powers of Appointment for Income and Estate Tax Minimization and Asset Protection Purposes

This webinar addresses 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?

Presented by: Ed Morrow, JD, LLM, CFP

CLE: 1.0 general credit

Approved States: AR, CA, CO, GA, IL, NJ, NV, NY, OK, PA, TN, UT, VT

(AK, AZ, CT, MO, ND, NH, TX eligible to claim credit)

We will supply you with the information needed to apply in other states.

Contact shopcle@wealthcounsel.com for CLE assistance. 

WealthCounsel members: This CLE eligible program is complimentary for WealthCounsel members.  Please access and view it here via the member website for optimal experience and inclusion in your CLE Profile Account.