Jay Oppenheim, Counsel at Saul Ewing LLP, will be a presenter and panelist on May 19th as part of ABA’s Real Property, Trust and Estate Law Section's Basics of Planning with Business Interests webinar series. The topic will be "Retained Interest and Control under Section 2036."
Section 2036 exists to prevent a taxpayer from having their cake and eating it too. To get the benefits of transferring assets out of their gross estates, donors must part with control over the disposition of such assets and from enjoying their benefits. This panel will address the current state of Section 2036 after its development in recent jurisprudence and more.
If the donor retains interest or control, the consequence is not just the loss of the tax benefits, but a whipsaw effect by there being a far greater tax liability compared to what would have happened if no planning was done.
To help practitioners address these issues, the panel will address:
- The current state of Section 2036 after its development in recent jurisprudence;
- Trust drafting to protect against Section 2036 inclusion;
- Creating and administering entities that provides for the practical operation of the entity while not creating;
- Prophylactic measures with existing entities that address Section 2036 concerns without creating deemed gifts; and
- Estate tax apportionment and reporting considerations.
