SOP2403. Estate Planning for the .1%

To be top .1% in 2023, a household needed a net worth of $61,827,166. How does planning for those with $62M and above differ from clients with lesser wealth? The reciprocal trust doctrine, DAPTs, hybrid-DAPTs, or SPAT should not be necessary. Or should they be? What types of planning techniques should be considered? How can, for example, planning using a technique like a note sale transaction be enhanced to potentially provide a greater chance of success and to better deflect an audit challenge? Steps like independent counsel, escrow arrangements, and alternate techniques for each transaction (e.g., use a different spillover receptacle in each transaction). How can clients with scores of entities more practically handle documentation? How to address Powell/Moore issues that a Wandry or Christiansen defined value mechanism might introduce. Disclaimer provisions in trusts, spillover to sub-trusts for the grantor and more. Income tax planning for non-grantor complex trusts. What might CCA 202353018 mean to a client’s renunciation of a DAPT or hybrid-DAPT interest? The impact of tax proposals like the American Housing and Economic Mobility Act of 2024 could be especially devastating. And more…

Learning Objectives:

• Identify how larger wealth transactions can be handled with more sophisticated techniques that may enhance the plan’s potential for success.
• Apply variations of planning techniques into components of a complex large estate transfer.
• Use one planning approach to address state pass-through business alternative income tax (BAIT)/pass-through entity tax (PTET) programs, Powell, and estate inclusion.
• Identify techniques to consider incorporating into complex trust plans.