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

Mon Jan 17 10:49:18 PST 2011

I will too.

Andrew M. Katzenstein 
Partner

Proskauer
2049 Century Park East
Suite 3200
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f  310.557.2193  
akatzenstein at proskauer.com 

----- Original Message -----
From: estgift-bounces at actec.org <estgift-bounces at actec.org>
To: ZeydelD at gtlaw.com <ZeydelD at gtlaw.com>; EstGift at actec.org <EstGift at actec.org>
Sent: Mon Jan 17 10:45:03 2011
Subject: Re: [EstGift] FW: ACTEC Project - Potential Estate, Gift and Income Tax Issues Associated with Decanting

I'll work on it. 

Elaine M. Bucher
Board Certified by The Florida Bar in Wills, Trusts & Estates
Fellow, American College of Trust and Estate Counsel

Proskauer
2255 Glades Road
Suite 421A
Boca Raton, FL 33431-7360
d 561.995.4768
f  561.241.7145 
ebucher at proskauer.com 

greenspaces
Please consider the environment before printing this email.

-----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
Shareholder
Greenberg Traurig, P.A.  | 333 Avenue of the Americas (333 S.E. 2nd
Avenue)  | Miami, FL  33131
Tel 305.579.0575  | Fax 305.579.0717
ZeydelD at gtlaw.com | www.gtlaw.com

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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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any U.S. tax advice contained in this communication 
(including any attachments) was not intended or written to 
be used, and cannot be used, for the purpose of (i) 
avoiding penalties under the Internal Revenue Code or (ii) 
promoting, marketing or recommending to another party any 
transaction or matter addressed herein.

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