We will survey of the predominant traits of the generations represented in today’s estate planning process (the Greatest, Boomer, Gen X and Millennial generations); examine changes in marriage and family structures, changes in family governance, the increasing cultural diversity of today’s families, artificial reproductive practices, and assumptions about life expectancy and mortality; explore approaches to estate planning and wealth allocation, modifications of trust design, and issues in the allocation of fiduciary responsibility which are better aligned with the needs of modern families; explore issues associated with increased longevity; and examine the ways in which attorneys and fiduciaries can assist families in building more effective protocols for family collaboration and decision making.
This will be a review of recent legislative, regulatory, and judicial developments related to estate and trust planning and administration. Special attention will be paid to the impact of the CARES Act and subsequent related legislation, the SECURE Act, marital planning, estate inclusion, valuation, generation-skipping tax, charitable planning, federal and state fiduciary income taxation, and insurance.
Special Purpose Entities (SPE’s) have found favor with modern estate planning attorneys, and the benefits of an SPE are gaining momentum. This presentation will feature an overview of South Dakota’s legal requirements for the creations and use of Special Purpose Entities and the many advantages of using this structure. The presentation will also highlight some concerns and areas to be aware of when working with an SPE, as well as unresolved legal issues that may present risk for trustees.
Moderated by Patrick Goetzinger, members of the Task Force will discuss the work of the Task Force in shaping South Dakota trust law for the upcoming 2021 legislative session and review new trust laws that became effective in 2020. By Executive Proclamation, the Task Force’s goal is to establish and maintain South Dakota’s stature as the premier trust jurisdiction in the United States. The Task Force, the only one of its kind in the nation, is comprised of representatives from the trust industry, recognized as experts in their field, and ex-officio appointments from state government agencies. The panel is a cross section of the Task Force membership. A portion of the discussion will be dedicated to a Q&A session with attendees.
In this presentation, Michael Sneeringer will discuss estate planning tools and techniques for amicably disposing of family businesses. He will begin with the psychological role in the founding generation’s dealings with disposing of the business, in light of the sometimes future generation’s reluctance to continue the business. He will discuss whether the use of life insurance, private annuities, intentionally defective trusts and/or GRATs may be appropriate vehicles to dispose of family businesses. He will describe the importance of valuation issues for financial and tax purposes especially in light of today’s record low AFRs and 7520 rates. He will describe how to efficiently craft a buy-sell plan with family members and key employees. Finally, he will discuss the pitfalls of planning for the incapacity of the founding generation, and how an outside manager might assist with the family dynamic in a business succession plan.
As interest in cryptocurrencies like BitCoin, LiteCoin and Ripple continues to increase, the Internal Revenue Service is paying more attention to these kinds of assets, and estate planning attorneys are likely to see more clients incorporating cryptocurrency into their estate plans. Although there is little authority on the tax treatment of cryptocurrency to date, attorneys should be aware of the ins and outs of this specialized property in order to create the best estate plans for clients holding cryptocurrency and properly administer the estates of deceased clients who owned cryptocurrency at their death. This presentation will discuss why some clients may find cryptocurrencies appealing, the potential downsides of owning such an asset, issues that may arise when making gifts of cryptocurrency or administering an estate with cryptocurrency, and estate planning techniques that may be well-fitted to this unique and volatile asset type.
The duties and liabilities of directed trustees and trust directors remain a source of confusion. This session will canvass the new Uniform Directed Trust Act, explore how the Act simplifies drafting and administering directed trusts, compare the Act to the South Dakota statute, and highlight some of the most helpful uses of directed trusts in the current planning environment.
This session will focus on the use of trusts that are foreign trusts for U.S. tax purposes but domestic trusts for state law purposes. They have U.S. trustees and are created under the laws of one of the states of the United States. Despite their substantial presence in the United States, U.S. income tax law treats them as foreign because a foreign person holds one or more powers over the trust. This type of trust is likely to be an attractive wealth transmission device for the increasing number of non-U.S. persons who are seeing their children move to the United States on a long term or permanent basis. We will discuss best ways to structure such a trust, how it should be administered during its foreign grantor’s life, methods of avoiding U.S. estate tax at the grantor’s death, how to achieve a basis adjustment for trust assets when the grantor dies, and how best to take advantage of the trust’s foreign status after the grantor’s death.
Navigating family systems and cultures while remaining a fiduciary for family trust clients can take a trustee to a breaking point. Work through a sample case that will bring questions to mind to help you learn to navigate even some of the most challenging conversations. Questions to think about. How do I know if I should bring in a family wealth coach? What are some things that I can do to help facilitate challenging conversations? How do I know if I am becoming part of the system vs. remaining an effective trustee for the client? Talking through family emotional systems and thinking about family culture will give you tools to add to your tool box to bring more value to your clients.