4 Credits: Taxes
Estate Tax Planning examines the various aspects of planning for the estate tax liability, beginning with a discussion of the genesis of estate taxation in English common law. Subjects discussed include a) the estate and its administration; b) federal gift and estate taxes; c) common estate planning trusts; d) calculating federal estate taxes; e) state inheritance and estate taxation; and f) estate tax payment. The steps taken to calculate federal estate tax liability are examined, and the federal estate tax calculation is explained.
After completing this course, you will be able to:
- Explain the differences between the probate estate and the federal gross estate;
- Identify the components of a decedent’s probate estate;
- Describe the assets that comprise a decedent’s federal gross estate; and
- Explain the duties of an executor or administrator of a decedent’s estate.
- Identify the principal estate tax provisions of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Act) and the American Taxpayer Relief Act of 2012 (2012 Tax Act);
- Describe how the current annual gift tax exclusion permits the tax-free transfer of property ownership;
- List the deductions allowed in calculating the federal estate tax liability;
- Define the estate tax unified credit and its exemption equivalent; and
- Explain how the portability provision operates to reduce federal estate tax liability.
- Describe how a credit shelter trust works to reduce federal estate tax liability in suitable estates;
- List the client estate planning objectives met through a qualified terminable interest (QTIP) trust; and
- Explain how an irrevocable life insurance trust (ILIT) facilitates the use of life insurance to pay estate tax and settlement costs without increasing the federal gross estate.
- Identify the components of the federal gross estate;
- List the deductions that may be taken from the federal gross estateto arrive at the tentative taxable estate;
- Explain how state estate taxes are accounted for in calculating the federal estate tax liability;
- Calculate the value of adjusted taxable gifts that must be added to a decedent’s taxable estate;
- Describe the use of the estate tax unified credit, the credit on prior transfers and the foreign death tax credit in determining federal estate tax liability; and
- Calculate the federal estate tax liability under various estate tax fact patterns.
- Describe the principal differences between state estate taxes and inheritance taxes;
- Identify the factors that affect the amount of state inheritance tax liability; and
- Explain how the familial relationship of a beneficiary to a decedent determines the applicable inheritance tax class.
- Describe the four methods generally available for payment of estate settlement costs;
- Identify the factors that need to be considered when evaluating the relative effectiveness of the various methods of paying estate settlement costs;
- Determine the parties that should normally own life insurance when designed to be used solely to pay estate settlement costs; and
- Explain how life insurance death benefit proceeds payable to an irrevocable life insurance trust are used by a decedent’s estate to pay estate taxes and settlement costs.
April 5, 2023
There are no prerequisites.
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02339-23-S
IRS Federal Tax Law Credits: 4
CTEC Course Number: 2071-CE-1907
CTEC Federal Tax Law Credits: 4
CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.
CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at www.ctec.org.
Meet The Experts
Paul J. Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.