Grantor trusts are ubiquitous in estate planning, but significant uncertainty still exists amongst practitioners about the “right” powers to make the trust a grantor trust for income tax purposes. In this dynamic 90 minute program, Paul Hood will conduct an exhaustive analysis of the power to swap assets with a grantor trust, which two revenue rulings made much more common in use. Along the way, Paul will address: 

History of the swap power as a grantor trust power

Clifford Regulations

Analysis of IRC Sec. 675(4) and the corresponding regulations

The meaning of “reacquire”

Tax consequences of holding the swap power; Jordahl Estate v. Com’r.

Tax consequences of exercising the swap power

Who should hold the swap power and who shouldn’t

How should the swap power be held and exercised, i.e., in a fiduciary or non-fiduciary capacity

Outer limitations on the swap power and what can be substituted for the grantor trust assets; promissory notes

Meaning of “equivalent value”

Should the swap power be held in a fiduciary capacity or a non-fiduciary capacity

Rev. Rul. 2008-22 and 2011-28; Rev. Proc. 2007-45: Comfort to use of the swap power?

Effectiveness of the swap power

Toggling the swap power and the consequences of such; Notice 2007-73

Duties of the trustee when a swap power is exercised

State court cases involving the swap power

Uses of the swap power for basis planning

Analysis of the proper language for the swap power, including forms!

Don’t miss this practical and comprehensive program! If you have a question that you’d like to see Paul address during the webinar, just e-mail him at paul@paulhoodservices.com.