Cummings & Lockwood

WEBINAR: S Corp Issues for Trusts and Estates: Qualified Shareholders, Key Tax Rules, Multiple Trusts, QSST, ESBT - Wednesday, July 1, 2020 at 1:00 p.m. EDT

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May 25, 2020

Stefania L. Bartlett and Cara Howe Santoro, attorneys in the Private Clients Group of Cummings & Lockwood will participate in a Webinar on Wednesday, July 1, 2020 at 1:00 p.m. EDT presented by Strafford Live Webinars.


S corporations are subject to stringent rules with limitations on who or what can be a shareholder of an S corporation. For estate planning purposes, trusts and estates counsel must recognize the impact of eligibility rules for S corps, key tax provisions, and reporting and administrative challenges to implement methods to minimize tax liability.

Succession, shareholder agreements, valuation, post-mortem planning, and basis considerations are some of the challenges of developing an estate plan for owners of S corporations. The 2017 tax reform law created significant opportunities, along with some additional complexity, for estate planners and advisers. Clients with ownership interests in an S corporation are less focused on reducing estate taxes and more focused on avoiding probate and reducing future capital gains tax through obtaining a basis step-up.

Estate planning counsel must be adept at applying key tax provisions to current and future estate plans involving S corporations. For existing ESBTs, trusts and estates counsel should determine whether the trust document allows for realignment of beneficiaries to enable use of a QSST or, in the absence of this power, whether a modification of the original trust is appropriate.

Stefania L. Bartlett, Counsel at Cummings & Lockwood; Robert A. (Bob) Bryant, Attorney at Giarmarco Mullins & Horton and Cara Howe Santoro, Attorney at Cummings & Lockwood, will provide trusts and estates counsel guidance on critical issues relating to S corporations in estate planning. The panel will discuss principal tax rules relating to S corporations that significantly impact estate planning and offer techniques for the use of multiple grantor trusts, S corp trusts, and other items to avoid unintended tax liability.

The panel will review these and other key issues:

  • Critical guidance on qualified shareholders of S corporations for trusts and estates counsel
  • Principal challenges of S corp ownership interests in estate planning and methods to overcome them
  • Identifying issues in current S corporation trust structures and making modifications for optimal tax benefits
  • The application of the 20% deduction on qualified pass-through business income
  • Current differences in tax treatment between an ESBT and a QSST holding S corporation stock
  • Essential considerations for transfers of S corporation interests

For more information or to register for this webinar, please click here or call 1-800-926-7926 (ask for S Corporation Issues for Trusts and Estates on 7/1/20 and mention code: DL1X61-C8NLAZ)