Content Provider
Thompson coburn llp
Handout Materials
Presentation Slides
Additional Materials
Owner Compensation vs. Distribution
Modifying Trusts
Trust Use
Structuring Ownership of Privately-Owned Businesses
Webinar Technical FAQs
Free cpece webinars
Owner Comp. vs. Distribution: Positioning Trusts Re Prop. Income Tax Changes

OWNER COMP. VS. DISTRIBUTION: POSITIONING TRUSTS RE PROP. INCOME TAX CHANGES

Cost Free
Presentation Length 1.5 hours

Recorded DateAugust 23, 2021
CPE:Not available
(archived webinars do not offer CPE credits)
Subject AreaTaxes
Course LevelAdvanced
Course Description

Drawn from Steve Gorin’s 2nd quarter 2021 newsletter, this course discusses recent cases on when payments to owners who perform services are compensation and when they are distributions; describes issues in modifying trusts to avoid proposed taxes on distributions from trusts after December 31, 2021; and evaluates a non-grantor trust’s use of annuities and life insurance to avoid proposed high-income rates on dividends and capital gains.

Highlights:


  • We will review a 2021 case that showed what not to do when trying to compensate owners, as well as a smattering of cases and rulings from the past couple of years relating to compensating owners or key employees.

  • We will discuss how trusts that allow distributions among various generations without requiring the trustee to apply standards can likely terminate free from any tax issues whatsoever, whereas trusts that provide more limited discretion or more well-defined rights to beneficial interests may have income and transfer tax consequences.

  • As part of a coordinated plan, remaindermen agreed to a trustee distributing the entire trust to the surviving spouse. The surviving spouse, in turn, created irrevocable gift trusts for the remaindermen and allocated her GST exemption to them. We will discuss the children’s arguments that they did not make a gift.

  • We will discuss unique tax issues when using an annuity contract or life insurance policy to try to avoid the drag of the Biden proposal to tax capital gains as ordinary income for upper-income taxpayers.



Learning Objectives:


  • Identify the pros and cons of a C corporation taxation structure

  • Review President Biden’s proposed taxes on distributions from trusts

  • Summarize CCA 202118008, addressing the commutation of a QTIP trust

  • Review the idea of maintaining a single trust with separate shares instead of terminating a trust when the senior generation dies.

  • Identify the Biden proposal to tax capital gains as ordinary income for upper-income taxpayers

Not logged
PLEASE NOTE: ARCHIVED WEBINARS DO NOT QUALIFY FOR CPE
Linkedin
Thompson coburn llp

Steve has drafted trusts and a full range of estate planning documents for clients to help grow, preserve, and transmit their family wealth. He has also prepared organizational documents for limited liability companies, corporations, and partnerships to implement their owners' wishes regarding current and future control and transmission, including bringing in new owners and facilitating exit strategies. 
Steve enjoys helping clients structure their affairs to achieve their personal, business, and financial goals while reducing the drag that taxes imposed on them. His firm provides full service to businesses; however, he also acts as counsel on specialized matters while cooperating and facilitating the continued involvement of an existing legal, accounting, and financial services team. Steve maintains his CPA license but prefers to refer income tax returns to practicing CPAs.

Steve Gorin is the former president and an ongoing contributor to Covenant Place’s strategic initiatives. It is a senior affordable housing community with a groundbreaking model for integrated residents with the surrounding community and facilitating holistic services to enrich their lives. 
 
To know more about Steve Gorin, kindly click on the link below:
http://thompsoncoburn.com/people/steve-gorin
 
For various free resources Steve offers, see https://www.thompsoncoburn.com/insights/blogs/business-succession-solutions/about
 

About Our Presenter

Thompson coburn llp

For approximately 90 years, Thompson Coburn LLP has provided the quality legal services and counsel our clients demand to achieve their most critical business goals. Whether helping with a tax, estate planning, real estate or employment issue, navigating a complex acquisition or defending a product or service in litigation, we have the knowledge and resources to meet any legal need.


With over 380 attorneys, we have experience in more than 50 areas of the law. Supported by our firm's state-of-the-art technology, lawyers in our Chicago, Dallas, New York, Los Angeles, Southern Illinois, St. Louis and Washington, D.C. offices enjoy a nationwide practice.