Planning for the Freeze – The Missouribar

Originally presented on: November 21, 2019

“Asset freezes” transfer future appreciation in a closely-held company or other asset from a senior generation to a junior generation, reducing the tax exposure of the senior generation and providing that any appreciation will be taxable at the generally lower rates of beneficiaries. Asset freezes use a variety of trusts and techniques to achieve this shift in taxable appreciation. Because freezes are subject to abuse, they are frequently challenged by the IRS. If carefully planned, drafted, and administered, however, asset freeze platforms are effective tools for tax reduction while the senior generation still retains income from the asset. This program will provide you with a practical guide to the techniques, risks and opportunities of asset freezes.

• Use of retained interest trusts to shift asset appreciation – GRATs, GRITs, GRUTs
• Installment note sales of closely-held companies to heirs
• Use of self-cancelling installment notes and private annuities
• Qualified Personal Residence Trusts
• Income tax consequences of asset freezes

Speakers: Missia H. Vaselaney, Taft, Stettinius & Hollister, LLP, Cleveland, OH and Michael Sneeringer, Porter Wright Morris & Arthur LLP, Naples, FL

NOTE: This program was originally produced as a telephone seminar and is available on demand in streaming audio. This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics or elimination of bias credit.