Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, November 13, 2023

CLE: QTIP Trusts Holding Interests in LLCs and Partnerships (Danger Zone)

Seymore Goldberg provided information for an upcoming CLE: QTIP Trusts Holding Interests in LLCs and Partnerships (Danger Zone) on Thursday, November 16th. Please find more information below:

Many taxpayers may own partial interests in LLCs or partnerships.  Should such interests be the subject of a bequest to a QTIP trust? The instructor recently made a Revenue Ruling request to the IRS regarding this significant QTIP trust tax issue.  This request covered in part the following:

    • Systemic significant fiduciary income tax compliance issues for trustee may be triggered by such transactions under the trust accounting rules in New York State and eight other jurisdictions.  Who would want to be a trustee?
    • IRS rules for trust fiduciary income tax returns (Form 1041), QTIP marital deductions and the jurisdiction’s trust accounting rules. 
    • What if the jurisdiction’s [over 35] trust accounting rules go one way and the IRS rules go the other way?  QTIP/conflict of laws issue.
    • QTIP marital deduction at risk or not in over 35 jurisdictions.

Additional key topics include:

    • Waiver of IRS penalty rules under Secure 
    • Excise tax rules that apply for first distribution calendar year
    • Major IRS statute of limitation changes under Secure 2.0 Act of 2022
    • Major IRS penalty changes under Secure 2.0 Act of 2022
    • Estate planning and professional liability court case (privity issue)
    • Professional liability court case (privity issue)
    • IRA beneficiary malpractice court case
    • Actual and potential malpractice issues regarding retirement distribution advice.  Giving wrong advice or failure to give timely advice (includes systemic issues) in privity and non privity jurisdictions.
    • Systemic major non-compliance issues involving IRA trusts and Roth IRAs that you must be made aware of. Consequences of non-compliance can be severe for many.


Conferences & CLE, Estate Planning - Generally, Trusts | Permalink