Ten Common Portability Mistakes and What You Need to Know to Avoid Them

March 4, 2016

Hot Topic Webinar

Presented by Alan S. Gassman

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This presentation (including a robust outline, useful PowerPoint slides, and spreadsheets) is provided to help planners use the best strategies, and follow appropriate procedures, for assuring that married clients and surviving spouses are best situated from a tax, estate planning, and creditor protection standpoint. A number of mathematical rules of thumb relating to planning assumptions, IRA planning, and QTIP planning will be reviewed to provide specific guidance on common situations where irrevocable trusts and other active planning tools can be used sooner rather than later to reduce the issues that can arise when portability decisions might be risky. Common life insurance, Clayton QTIP, and basis step-up errors, strategies, and assumptions will also be discussed. You will not have to be concerned with the portability rules themselves to get a lot out of this program. The mistake categories covered will be as follows:

1. 706 and Extension Errors

2. Wrongfully Assuming That No Estate Tax Planning Will Be Needed

3. Losing the Portability Allowance Because of Remarriage to a New Spouse Who May Die First

4. Loss of the Ability to Share DSUE Amounts with a Subsequent Spouse and His or Her Family

5. Criticism of the “Outright to Spouse and Allow Disclaimer to Credit Shelter Trust” Arrangement

6. Not Using the Clayton QTIP Arrangement to Safeguard Assets and Make Use of the First Dying Spouse’s GST Exemption

7. Assuming the IRS Will Not Deny Clayton QTIP Treatment When it Is Not Necessary to Avoid Estate Tax on the First Spouse’s Death

8. Failure to Fund a Credit Shelter Trust with Joint Assets and Assets Belong to the Surviving Spouse as Permitted under Community Property Trusts, as Indicated in TAM 9308002 and PLR’s 200101021, 200210051 and 2004403094: the JEST Conversation

9. Failure to Preserve the Portability Allowance by Using Irrevocable Life Insurance Trusts

10. The Assumption That IRA and Qualified Plan Benefits Should Always Be Rolled over by a Surviving Spouse Who Could Otherwise Be the Beneficiary of a Conduit or Accumulation Trust

Alan S. Gassman

Alan S. Gassman is the founder of the Clearwater, Florida law firm of Gassman, Crotty and Denicolo, P.A., which focuses on the representation of high net worth families, physicians and business owners, and their companies in estate planning, taxation, and business and personal asset structuring.

Mr. Gassman is the lead author on Bloomberg BNA’s Estate Tax Planning in 2011 and 2012, Gassman and Markham on Florida and Federal Asset Protection Law, Florida Law for Tax, Business & Financial Planning Advisors, Eight Steps to a Proper Florida Trust and Estate Plan, A Practical Guide to Kickback & Self-Referral Laws for Florida Physicians, The Florida Power of Attorney & Incapacity Planning Guide, The Florida Advisor’s Guide To Counseling Same Sex Couples, and a co-author of the recently published Legal Guide To NFA Firearms and Gun Trusts, among others.

Mr. Gassman is a frequent speaker for continuing education programs, and has published well over 200 peer reviewed articles with publications such as Bloomberg BNA Tax & Accounting, Trusts and Estates Magazine, Estate Planning Magazine, The Florida Bar Journal, and Leimberg Estate Planning Network (LISI). He is also a past President of the Pinellas County Estate Planning Council and has co-chaired two annual Florida Bar programs for over fifteen years: Wealth Protection and Representing the Physician.

Mr. Gassman holds a law degree and a Masters of Law degree (LL.M.) in Taxation from the University of Florida, and a business degree from Rollins College. Mr. Gassman is board certified by the Florida Bar Association in Estate Planning and Trust Law, has the Accredited Estate Planner designation from the National Association of Estate Planners & Council, has maintained an AV rating from the Martindale-Hubbell for over 20 years and is listed in both Best Lawyers in America and Florida Super Lawyers.

For more information, please visit http://gassmanlaw.com/

CLE Credits

InterActive Legal is not an approved Continuing Education Sponsor. However, several states and regulatory agencies for a variety of professionals that participate on our teleconferences may still receive continuing education credit for their participation. If a participant wishes to receive CE credit for their participation in these teleconferences, they must apply to receive credit on their own and through their individual states and regulatory authorities. It is the responsibility of the participant to file for CE credit and is not guaranteed by InterActive Legal.

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