Financial Assets Series
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This year's Institute features a series of programs focusing on Financial Assets in estate planning. This series will examine how to manage tax basis to maximize the "step-up" at death, provide an update on current developments involving life insurance, explore how fiduciaries across the country have applied the Uniform Principal and Income Act (UPIA), and focus on the applicability of UPIA to trust-owned life insurance.


Tuesday, January 14, 2014 – 9:50 – 10:40 a.m.
Venn Diagrams: Meet Me at the Intersection of Estate and Income Tax

Paul S. Lee


Post-ATRA planning for larger estates will increasingly focus on income tax planning, the management of tax basis, and maximizing the "step-up" in basis at death. This presentation will discuss: measuring the transfer tax costs (including state estate and inheritance taxes) against the income tax savings from the "step-up" on different types of assets; recapturing assets that have already been transferred; multiplying the applicable exclusion amount; using trust and partnership elections, distributions, and reorganizations to maximize the "step-up" and "split" income across taxpayers.


Tuesday, January 14, 2014 – 2:50 – 3:40 p.m.
When You Must Adjust — How, When, Why and What Do the Professionals Do?

Gail E. Cohen


More than 15 years have passed since the Uniform Law Commissioners promulgated the first Uniform Principal and Income Act in 1997. Through the years, professional fiduciaries have developed techniques and guidelines to assist in determining the appropriate manner to exercise discretion under the various state versions of the Act. This session will review the state laws, examine the cases that have arisen interpreting the laws, and discuss how professional fiduciaries across the country have applied the law.


Wednesday, January 15, 2014 – Special Session I-C (2:00 – 3:30 p.m.)
Living and Working with the Uniform Principal and Income Act

Gail E. Cohen, George D. Karibjanian, R. Hugh Magill


This panel will examine the data collected from professional fiduciaries throughout the United States on the methodology used to implement the Act across various states. Learn the highly effective habits of corporate trustees and participate in the discussion of the relative merits of these different methodologies.


Wednesday, January 15, 2014 – Special Session II-A (3:50 – 5:20 p.m.)
Venn Diagrams II: Tax Basis and Income Tax Planning for Larger Estates

Paul S. Lee, Cassady V. Brewer, Ellen K. Harrison


This presentation will focus on the more complex planning techniques that create, sustain and maintain tax basis and maximize income tax savings. The panel will focus on: the use of partnerships to "shift" basis, income, and assets and to maximize the "step-up" in basis with the Section 754 election and partnership debt; creating estate tax inclusion and basis through elections, powers, and appointments in trust; preferred partnerships; planning with depreciable and depletable assets; and the use of trusts to defer or avoid state income taxes.


Wednesday, January 15, 2014 – Special Session II-E (3:50 – 5:20 p.m.)
What's Hot in Life Insurance

Donald O. Jansen , Mary Ann Mancini


This panel will discuss recent developments and current issues involving life insurance such as policy valuation; Crummey powers (when there is an arbitration clause, whether notice is necessary, etc.); substitution power in a trust holding a policy; policy sales; and charitable gifts of policies (CRTs, shark fin CLATs, etc.).


Thursday, January 16, 2014 – Special Session III-E (2:00 – 3:30 p.m.)

Lawrence Brody, Gary L. Flotron, Richard A. Schwartz, Richard M. Weber, E. Randolph Whitelaw


The Uniform Prudent Investor Act (UPIA) requires all trustees to manage, monitor and evaluate trust assets and investments for the benefit of the beneficiaries of the trust. However, despite numerous professional articles pointing out the applicability of UPIA to trust-owned life insurance (TOLI), the vast majority of trustees of irrevocable life insurance trusts (ILITs) either are unaware of or continue to ignore this duty with respect to TOLI. This multi-discipline presentation will examine the application of the provisions of the UPIA to TOLI, methods and systems to evaluate and manage the risk inherent in permanent life insurance, and which methods and systems will comply with UPIA and are "dispute defensible" for the trustee of an ILIT.


Heckerling Institute on Estate Planning
University of Miami School of Law, 1311 Miller Drive, Room C-423, Coral Gables, FL 33146
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