Using installment sales to non-grantor trusts for estate and income tax planning. 27 April 2022

Host group
Host Left
Hosted by
STEP Orange County
Event Type
Meeting/Seminar
Date
Venue

The Pacific Club
4110 MacArthur Boulevard
Newport Beach, CA
United States of America

Speaker: Jerome Hesch, Esq., ACTEC, Of Counsel - Meltzer, Lippe, Goldstein & Breitstone, LLP

We've applied for approval to offer MCLE, CPE, CTFA, CA INS, CFP

  • Both in-person and virtual attendance available
  • In-person attendance: Limited in person and spaced seating. Appropriate local mask and distancing rules will apply to all in person gatherings.
  • Virtual attendance: Zoom link will be provided prior to meeting. 12.00-13.00

For individuals who desire to sell their business or investment assets while they are living, the step-up in basis at death is not an alternative.

(i) a property structured installment sale to a non-grantor trust can allow the gain the seller realised on the installment sale to be reported by the seller far in the future even though the non-grantor trust sells the purchased asset for cash a few years later.

(ii) how an installment sale to a non-grantor trust can be a viable estate freeze, taking advantage of valuation discounts and shifting a portion of the asset’s operating income and its subsequent appreciation in value out of the decedent’s estate.

(iii) unlike a grantor trust where the grantor trust’s income is taxable at the grantor’s highest income tax rates, a non-grantor trust can be used to shift taxable income to taxpayers in lower marginal income tax brackets.

(iv) how an irrevocable non-grantor trust with intangible assets in a state with no state income taxes can be used to eliminate state income taxes and unlike the incomplete gift trust that, the trust is not exposed to the estate tax.

Cost group
Event Cost
US Dollars
40.00
In-person attendance: Members
US Dollars
50.00
In-person attendance: Non-members
US Dollars
30.00
Virtual attendance
Schedule
11.30-13.00
Contact
STEP Orange County
Add to Calendar Disabled

Using installment sales to non-grantor trusts for estate and income tax planning. 27 April 2022