[EstGift] ACTEC Project - Potential Estate, Gift and Income Tax Issues Associated with Decanting

Mon Jan 17 10:40:19 PST 2011

I would love to work on this project.

Lauren Y. Detzel
Board Certified by The Florida Bar in Wills, Trusts & Estates;
Fellow, American College of Trust and Estate Counsel
407-428-5114
LDetzel at deanmead.com

Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, P.A.
800 North Magnolia Avenue, Suite 1500
Orlando, Florida 32803
407-841-1200 . Fax 407-423-1831
www.deanmead.com

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-----Original Message-----
From: estgift-bounces at actec.org [mailto:estgift-bounces at actec.org] On Behalf Of ZeydelD at gtlaw.com
Sent: Monday, January 17, 2011 1:33 PM
To: EstGift at actec.org
Subject: [EstGift] FW: ACTEC Project - Potential Estate, Gift and Income Tax Issues Associated with Decanting

Dear Committee Members:

In light of the recent IRS pronouncement of trust decanting as a no-rule area, Mary Ann Mancini, as Chair of Fiduciary Income Tax, and I would like to organize a joint subcommittee to provide technical assistance on the issues.  Perhaps our submission would become the basis for the issuance of a Revenue Ruling or other guidance.

I am seeking volunteers for this project.

Below are my random thoughts, which might give you a flavor for the project.  I would expect that we shall need people willing to assist with discrete research on various subjects, as well as those to craft the submission.

I look forward to your participation in what I believe to be an important project that ACTEC is uniquely qualified to address.

Thank you in advance.

Diana

PLEASE NOTE OUR NEW ADDRESS

Diana S.C.  Zeydel
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Tel 305.579.0575  | Fax 305.579.0717
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From: Bruce M. Stone [mailto:bstone at gfsestatelaw.com]
Sent: Sunday, January 16, 2011 4:25 PM
To: Zeydel, Diana (Shld-Mia-T&E); MaryAnn.Mancini at bryancave.com; KMoore at bricker.com; EnglishDa at missouri.edu
Cc: lawmfr at langate.gsu.edu; domckinnon at actec.org
Subject: Re: ACTEC Project - Potential Estate, Gift and Income Tax Issues Associated with Decanting

Ambitious and outstanding.

Bruce

----- Original Message -----
From: ZeydelD at gtlaw.com <ZeydelD at gtlaw.com>
To: Bruce M. Stone; MaryAnn.Mancini at bryancave.com <MaryAnn.Mancini at bryancave.com>; KMoore at bricker.com <KMoore at bricker.com>; EnglishDa at missouri.edu <EnglishDa at missouri.edu>
Cc: lawmfr at langate.gsu.edu <lawmfr at langate.gsu.edu>; domckinnon at actec.org <domckinnon at actec.org>
Sent: Sun Jan 16 15:49:44 2011
Subject: RE: ACTEC Project - Potential Estate, Gift and Income Tax Issues Associated with Decanting

Agree completely on the soundness of the approach. It will probably be helpful to take examples of different variants of trust dispositive terms and tax attributes, and address what types of decanting appear to be authorized, and what tax consequences result. I would envision analyzing an income trust, a sprinkling trust, absolute discretion versus standards of invasion, a trust that fulfills certain statutory requirements, such as 2503(c), 2642(c), CRAT, GRAT, QTIP etc., and the effects of decanting to make administrative changes (change system for appointment of trustees, number of trustees, etc. or investment powers of trustees, or converting to a directed trust), changes of situs and governing law, dispositive changes (and limitations on those) and conferring powers of appointment (and limitations on same).  At least those are my random thoughts. Diana

-----Original Message-----
From: Bruce M. Stone [mailto:bstone at gfsestatelaw.com]
Sent: Sunday, January 16, 2011 3:37 PM
To: Mancini, Mary Ann; Moore, Karen; Zeydel, Diana (Shld-Mia-T&E); EnglishDa at missouri.edu
Cc: lawmfr at langate.gsu.edu; domckinnon at actec.org
Subject: RE: ACTEC Project - Potential Estate, Gift and Income Tax Issues Associated with Decanting

An unnecessary suggestion but I'll toss it out anyway - the work product should objectively identify the issues and the possible theoretical answers.  It should not serve as a "sales" piece for decanting.  As one of the ACTEC representatives on the JEB and as someone who has had some interaction with Jim Hogan of the IRS recently on a client matter, I would love to see something that winds up with broad consensus on the consequences of decanting both under trust law and under tax law.
Something like that could serve as a framework for possible uniform legislation and agreement with the IRS on the tax aspects.
Jurisdictions and practitioners that chose to operate outside that defined playing field would then know the risks involved.

Bruce

Bruce Stone
Goldman Felcoski & Stone P.A.
95 Merrick Way
Suite 440
Coral Gables, FL 33134
305-446-2800 voice
305-446-2819 fax
brucestone at gfsestatelaw.com

-----Original Message-----
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