Using Powers of Appointment for Income and Estate Tax Minimization and Asset Protection Purposes

Host: Shaun McNaughton

Please join us via Zoom for a one-hour webinar designed to help you learn how to effectively plan for your clients. As part of a monthly webinar series offered through WealthCounsel, we will explain where to find the law on powers of appointment, using lifetime limited and general powers of appointment to shift income tax, and techniques to limit undesirable powers of appointment without curbing the beneficial income tax and/or estate tax effects. We will cover:

• What are the effects of powers of appointment only exercisable with consent of adverse or non-adverse parties for state law, bankruptcy, rule against perpetuities, estate/gift/GST tax?
• When does exercising a lifetime limited power of appointment trigger gift tax, and if so, for how much?
• When does exercising a testamentary limited power of appointment trigger estate tax, and if so, for how much? How can we avoid inadvertent triggering of the Delaware Tax Trap while affirmatively triggering it only when beneficial and for targeted assets?
• When should a trustee be wary that a lien could apply to the exercise of a power?
• When is a power exercisable only by Will? Should it be? Does this require probate of the Will? What are the rules if it is exercised by a Trust?
• Which state’s laws apply to the power – the situs of the trust or the residency of the powerholder?

Earn 1 hour of CLE, CPE, or CFP (pending)

In order to be awarded the full credit hours, you must be present during the entire webinar