PFP2615. Strategic Tax Planning and Asset Protection Trusts, including Elder Care and Special Needs

Asset protection trusts are frequently used in the context of elder care and special needs planning. This session will discuss strategies to address challenging trust tax structures and diverse assets such as IRAs, real estate, annuities, and business interests. Participants will compare available tax opportunities, highlight lurking tax traps, and compare techniques to maintain tax benefits. Optimizing tax basis step up and residential tax exemptions also will be covered.

Robert S. Barnett and Stuart H. Schoenfeld will present an in-depth presentation focusing on the intersection of tax law with elder care and special needs planning. Topics will include:
• how to ensure that the Medicaid trust does not result in adverse tax consequences;
• domicile issues to be considered with elder care planning;
• §1014(a) basis of trust property and protecting the step up upon death;
• potential tax pitfalls of using joint trusts;
• incorporating qualified terminable interest property (QTIP) and credit shelter provisions to a Medicaid protection trust;
• proper drafting for compliance with grantor trust rules;
• elder care planning with annuities;
• taxation of Supplemental Needs Trusts; and
• supplemental Needs Trusts after the Secure Act.

Learning Objectives:

• Apply techniques to ensure compliance with grantor trust rules.
• Identify potential tax pitfalls of using joint trusts.
• Determine how to incorporate estate inclusion, qualified terminable interest property (QTIP), credit shelter, and other estate tax savings techniques into Medicaid planning.
• Analyze elder care planning with annuities and assets with challenging tax structures.