Can YOU BDIT? BDIT's and BDOT's..."The Beneficiary Defective Inheritor's Trust" and "The Beneficiary Deemed Owned Trust." What are they? How do they work? Concerns and Best Practices"
We hear about trusts all the time – many different types of trusts – for tax reasons, but also for non-tax reasons. Many transactions and trusts can save and avoid estate taxes. However, some can save and avoid income taxes as well. In this do not miss event, Ed Morrow and Paul Hood present on the BDOT and BDIT – the Beneficiary-Deemed-Owned Trust (BDOT) and the Beneficiary Defective Inheritor’s Trust (BDIT). When we have heard about these trusts, to some, they are too good to be true. To some they seem to offer the best of all worlds. So, what is the real story behind these two types of trusts?
While versions of the BDIT and BDOT have been around for many years, we have heard more about them in recent years. In today’s landscape of estate taxes, high exemptions, and high-income tax states, the benefits of the BDIT and BDOT can be more attractive than ever before! However, in their current form and version, they are relatively recent developments among estate planning techniques and strategies. They have some characteristics similar to an Intentionally Defective (Grantor) Irrevocable Trust (IDGIT), but there are also potential features, advantages, and benefits unlike anything we have seen before. Are they the greatest thing to come along? Are they the answer to many planner’s and client’s problems and concerns? Do they work? Come here the experts teach us the basics, how they work, what and where the concerns are, and best practices. When used properly, the BDIT and BDOT can be very powerful!
During this exclusive LISI webinar, Paul and Ed will cover:
- Background of Fiduciary Income Taxation: Income Tax in Estate Planning
- Basics of IRC Sec. 678 – powers over income or corpus shifting tax burden
- Understanding Varying Definitions of “Income” in Subchapter J
- IRC Sec. 671 and the “Portion” Rules
- Comparisons of non-grantor trust v. grantor trust scheme; incl. §199A
- Effect of Current, Lapsed Withdrawal Powers for:
a) estate/gift tax under IRC Secs. 2041/2514;
b) crafting the power and lapse in light of 5/5 lapse protection
b) spousal elective share; asset protection; bankruptcy
- Techniques to improve asset protection – better than discretionary?
- Tax effect of amendments, reformation, decanting to add IRC Sec. 678 powers
- Income Tax Effect of Lapse – is it a “partial release” for IRC Sec. 678(a)(2)?
- Contrasting BDOTs with BDITs – including installment sale issues
- Contasting BDITs with IDGITs
Don’t miss this compelling webinar!!!
There will be no CE for this webinar
For those who have a conflict with the date/time, The session will be recorded. Simply register and you will have unlimited access to the recording.
Although they are scheduled for a particular time and date - once purchased - they can be viewed at ANY TIME!.
If you are not a LISI member please use the Buy Now Button below to pay the non-member price of $149*. *plus applicable sales tax (if any)
After you pay you will be sent a link with the registration information. Your webinar registration is designed for one individual user and groups up to 5 individuals. Sharing beyond this is not permitted. If you are interested in group access to our webinar content, please send an email to firstname.lastname@example.org
If you have any questions, please contact email@example.com
NOTE: To pay using a credit card, use the botton labeled
"Pay with Debit or Credit Card" after clicking the Buy Now button below.
If you are a LISI member, please login below to receive the member price of $129* for this webinar. *plus applicable sales tax (if any)