FOR LIVE PROGRAM ONLY Reporting GRATS, GRUTS, ILITS and IDGTs on Form 709: GST Exemption Allocation Calculations and Strategies WEDNESDAY , JULY 13, 2016, 1:00-2:50 pm Eastern IMPORTANT INFORMATION FOR THE LIVE PROGRAM IMPORTANT INFORMATION FOR THE LIVE PROGRAM This program is approved for 2 CPE credit hours . To earn credit you must: This program is approved for 2 CPE credit hours . To earn credit you must: Participate in the program on your own computer connection (no sharing) – if you need to register Participate in the program on your own computer connection (no sharing) – if you need to register • additional people, please call customer service at 1-800-926-7926 x10 (or 404-881-1141 x10). Strafford additional people, please call customer service at 1-800-926-7926 x10 (or 404-881-1141 x10). Strafford accepts American Express, Visa, MasterCard, Discover . accepts American Express, Visa, MasterCard, Discover Listen on-line via your computer speakers. Listen on-line via your computer speakers. • Respond to five prompts during the program plus a single verification code . You will have to write down Respond to five prompts during the program plus a single verification code . You will have to write down • only the final verification code on the attestation form, which will be emailed to registered attendees. only the final verification code on the attestation form, which will be emailed to registered attendees. To earn full credit, you must remain connected for the entire program. To earn full credit, you must remain connected for the entire program. • WHO TO CONTACT DURING THE LIVE EVENT For Additional Registrations : -Call Strafford Customer Service 1-800-926-7926 x10 (or 404-881-1141 x10) For Assistance During the Live Program : -On the web, use the chat box at the bottom left of the screen If you get disconnected during the program, you can simply log in using your original instructions and PIN.
Tips for Optimal Quality FOR LIVE PROGRAM ONLY Sound Quality Sound Quality When listening via your computer speakers, please note that the quality When listening via your computer speakers, please note that the quality of your sound will vary depending on the speed and quality of your internet of your sound will vary depending on the speed and quality of your internet connection. connection. If the sound quality is not satisfactory, please e-mail sound@straffordpub.com If the sound quality is not satisfactory, please e-mail sound@straffordpub.com immediately so we can address the problem. immediately so we can address the problem.
Reporting GRATS, GRUTS, ILITS and IDGTs on Form 709 July 13, 2016 Tracy M. Child, J.D., LLM., Partner Joy Matak, J.D., LLM., Director Sherman Wells Sylvester & Stamelman CohnReznick tchild@shermanwells.com joy.matak@cohnreznick.com
Notice ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY THE SPEAKERS’ FIRMS TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY THE SPEAKERS’ FIRMS TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN. RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN. You (and your employees, representatives, or agents) may disclose to any and all persons, You (and your employees, representatives, or agents) may disclose to any and all persons, without limitation, the tax treatment or tax structure, or both, of any transaction without limitation, the tax treatment or tax structure, or both, of any transaction described in the associated materials we provide to you, including, but not limited to, described in the associated materials we provide to you, including, but not limited to, any tax opinions, memoranda, or other tax analyses contained in those materials. any tax opinions, memoranda, or other tax analyses contained in those materials. The information contained herein is of a general nature and based on authorities that are The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. determined through consultation with your tax adviser.
Gift Tax Returns What is gift tax return? What is gift tax return? • If a Donor makes a gift worth more than the annual tax exclusion amount If a Donor makes a gift worth more than the annual tax exclusion amount ($14,000 in 2015 and 2016), the Donor must file a gift tax return (Form 709). ($14,000 in 2015 and 2016), the Donor must file a gift tax return (Form 709). Who is responsible for filing gift tax return? Who is responsible for filing gift tax return? • • All individuals who make a gift to another individual or entity that exceeds the All individuals who make a gift to another individual or entity that exceeds the annual exclusion amount must file a gift tax return. The Donor is responsible annual exclusion amount must file a gift tax return. The Donor is responsible for paying the gift tax, except in certain circumstances in which IRS allows the for paying the gift tax, except in certain circumstances in which IRS allows the gift recipient to pay the gift tax. gift recipient to pay the gift tax. What is the benefit of filing gift tax return? What is the benefit of filing gift tax return? • By filling the gift tax return, the government is formally advised of the transfer By filling the gift tax return, the government is formally advised of the transfer and less likely to challenge that transaction in the future. and less likely to challenge that transaction in the future. 5
Bea And Ben Generous 6
7
WHO IS A Donee? • Each individual, trust or charity listed on Each individual, trust or charity listed on Schedule A equals one donee. Schedule A equals one donee. • However, if the beneficiaries of a trust have a • However, if the beneficiaries of a trust have a present interest in the gift (e.g., Crummey present interest in the gift (e.g., Crummey withdrawal rights), then each beneficiary of withdrawal rights), then each beneficiary of the trust is a donee. the trust is a donee. 8
Bea Generous Donees • Forgiveness of indebtedness owed by Marion Money Forgiveness of indebtedness owed by Marion Money = = 1 donee 1 donee • Gift to Juana B. Generous Gift to Juana B. Generous = = 1 donee 1 donee • Gift to Community Foundation Charitable Organization Gift to Community Foundation Charitable Organization = = 1 donee 1 donee Gift to Easy Living Qualified Personal Residence Trust Gift to Easy Living Qualified Personal Residence Trust = = 1 donee 1 donee • • Gift to Bea Generous 2013 GRAT Gift to Bea Generous 2013 GRAT = = 1 donee 1 donee Gift to Ivan Money 2013 Trust Gift to Ivan Money 2013 Trust = = 1 donee 1 donee • • 529 Plan Gift to Xavier Money 529 Plan Gift to Xavier Money = = 1 donee 1 donee • Non-gift disclosure of sale to Grandchildren’s Generous Trust Non-gift disclosure of sale to Grandchildren’s Generous Trust = = 1 donee 1 donee • Gift to Bea Generous GST Trust for Robin Money Gift to Bea Generous GST Trust for Robin Money = = 1 donee 1 donee – – Robin Money has a right of withdrawal Robin Money has a right of withdrawal • Gift to Collette A. Day Gift to Collette A. Day = = 1 donee 1 donee • Gift to Generous Giving Family Trust Gift to Generous Giving Family Trust = = 2 donees 2 donees – The following three beneficiaries each have a right of withdrawal: The following three beneficiaries each have a right of withdrawal: • Ben Generous Ben Generous Marion Money (already counted above) Marion Money (already counted above) • • Owen Money Owen Money Gift to Generous Dynasty Trust Gift to Generous Dynasty Trust = = 1 donee 1 donee • • Gift to Ben Generous Spousal Access Trust Gift to Ben Generous Spousal Access Trust = = 1 donee 1 donee • GST Allocation to Ben Generous 2011 GRAT upon termination GST Allocation to Ben Generous 2011 GRAT upon termination = = 1 donee 1 donee TOTAL: TOTAL: 15 donees 15 donees 9
10
Basics A spouse of a donor may elect to be treated as the A spouse of a donor may elect to be treated as the donor of one-half the value of the of the gifts donor of one-half the value of the of the gifts made by the donor from the donor’s separate made by the donor from the donor’s separate funds. funds. The spouse must sign the donor’s gift tax return The spouse must sign the donor’s gift tax return consenting to the election. consenting to the election. If spouses choose to split gifts, they must split all If spouses choose to split gifts, they must split all eligible gifts. eligible gifts. Spouses cannot split gifts made to a trust in which Spouses cannot split gifts made to a trust in which the other spouse has a beneficial interest, unless the other spouse has a beneficial interest, unless the other spouse’s interest is ascertainable. the other spouse’s interest is ascertainable. 11
Recommend
More recommend
