Fiduciary Tax & Administration

New this year! This track of programs on Fiduciary Tax & Administration explores fiduciary income tax issues (including basis consistency), avoiding trustee liability in common transactions, drafting tax efficient trusts that also provides creditor protection, recent fiduciary case law, and fiduciary duties with respect to impact investing.


Tuesday, January 10, 2017  (2:50 – 3:40 p.m.)
With Great Power Comes Great Liability: Helping Trustees Avoid Pitfalls in Common Transactions
Lauren J. Wolven
Trustees are often asked to engage in loans to related parties or beneficiaries and other transactions with related trusts, closely-held assets and real estate. For a trustee who is not careful, even a seemingly simple act like making a loan to a beneficiary can lead to liability. This session will explore methods to reduce fiduciary risk in common trust transactions.

Wednesday, January 11, 2017 – Special Session I-B  (2:00 – 3:30 p.m.)
Do Not Feed After Midnight: Structuring and Drafting Trusts and Administration to Minimize Fiduciary Risk
Lauren J. Wolven, Todd A. Flubacher, Stacy E. Singer
This panel will evaluate options for reducing trustee liability from the inception of a trust, addressing selection of the governing law, choice of trustee, and division of duties among fiduciaries. But risk management does not end with drafting, and the panel will also discuss issues surrounding due diligence both at the trust acceptance phase and during ongoing administration.

Wednesday, January 11, 2017 – Special Session II-B  (3:50 – 5:20 p.m.)
Yes, I’ll Order That Trust “Fully Loaded”
Steven E. Trytten, Jonathan G. Blattmachr, Mickey R. Davis, Steven B. Gorin
This session will present the latest thinking on how to draft a trust that is income tax efficient (including net investment income tax), transfer tax efficient, qualifies for retirement stretch-out, and protects from creditors. Sample forms will be included.

Wednesday, January 11, 2017 – Special Session II-C  (3:50 – 5:20 p.m.)
Review of the Past Year’s Significant, Curious, or Downright Fascinating Fiduciary Cases (at least it seems to me)
Dana G. Fitzsimons, Jr.
This session will review recent cases from across the country to assist fiduciaries and their advisors in identifying and managing contemporary fiduciary challenges.

Thursday, January 12, 2017  (9:50 – 10:40 a.m.)
Knowing the Ropes and Binding the IRS When Fiduciaries Are Involved in Settlements and Modifications: Income and Transfer Tax Issues Every Fiduciary Should Know About
Melissa J. Willms
Fiduciaries have tons on their plates during estate and trust administrations. If litigation ensues or a trust construction, decanting, or other modification is sought, it is vital to know the income, estate, gift, and GST tax consequences that may arise when a fiduciary is a party to a settlement or takes part in a modification. You will also learn the importance of language used when documenting the outcome, and how to bind the IRS to the deal.

Thursday, January 12, 2017  (10:55 – 11:45 a.m.)
Reprise! The State Taxation of Trust Income Five Years Later
Richard W. Nenno
This topic was covered at the 2012 Heckerling Institute. Many attorneys, accountants, and trustees now consider it on an ongoing basis. The program will summarize the status of the law in key states and describe ensuing statutory, regulatory, and caselaw developments.

Thursday, January 12, 2017  (11:45 a.m. – 12:35 p.m.)
Feel Good Doing Good: Impact Investing When Settlors and Beneficiaries Want to Do More Than Make Money
Susan N. Gary
Investing to promote philanthropic goals occurs across a spectrum of investment strategies. The terminology and concepts can be baffling: Mission- Related Investments (MRIs), Program-Related Investments (PRIs), Socially Responsible Investing (SRI), Sustainable Investing (SI), and Environmental, Social and Governance (ESG). This presentation will cut through the confusion, address the fiduciary duties of trustees and the evolution of the prudent investor standard, and provide an overview of considerations for settlors and beneficiaries who are interested in investing for social good.

Thursday, January 12, 2017 – Special Session III-B  (2:00 – 3:30 p.m.)
Distilling the Essence of Subchapter J: Fiduciary Income Tax Essentials for Estate Planners
Melissa J. Willms, George L. Cushing, John Goldsbury
Income taxes continue to drive how estate planners advise clients to structure their plans. Income taxes that arise during estate or trust administration are just as important. The panel will discuss the critical aspects of Subchapter J, including what is income, DNI, IRD, and the grantor trust rules.

Thursday, January 12, 2017 – Special Session IV-B  (3:50 – 5:20 p.m.)
The State Taxation of Trust Income—A Closer Look
Richard W. Nenno, Christine L. Albright, Richard S. Kinyon, Timothy P. Noonan
This panel will focus on how New York, California, Illinois, and other crucial states tax trust income and will offer strategies that often may save large amounts of tax.

Thursday, January 12, 2017 – Special Session IV-C  (3:50 – 5:20 p.m.)
It’s Hard to Be Good: The Fiduciary Issues, Strategies, and Drafting Considerations Related to Impact Investing
Benetta Park Jenson, Susan N. Gary, M. Ruth M. Madrigal, John Tyler
Impact investing is a hot topic in the investment world. More and more clients are interested in investing in a way to make the world a better place. This panel will take a deeper dive into the fiduciary issues that arise when settlors, beneficiaries, endowments and foundations want to invest for social good. The panel will also discuss strategies and drafting to accomplish the settlor’s goals and beneficiaries’ wishes, including alternatives to traditional trust structures, such as the highly publicized Chan Zuckerberg Initiative LLC.

Friday, January 13, 2017  (9:50 – 10:40 a.m.)
The Executor’s Job Gets Tougher: Basis Consistency and Selected Other Income Tax Issues Facing Executors
Steve R. Akers
The basis consistency rules, and the IRS forms and regulations executors must follow, create reporting headaches for advisors and significant additional fiduciary concerns for executors. The statutory rules, IRS forms, and proposed regulations will be examined, including a variety of surprises in the regulations. The executor must also navigate a myriad of other income tax traps, some of which will be highlighted.