Sep 1, 2011 12:00 PM

Practical tips to avoid the devil in the details after a transaction has closed

By N. Todd Angkatavanich & Stephanie Loomis-Price

Perhaps it's a matter of managing expectations and responsibilities between attorneys and clients about who will have the ongoing responsibility to ensure that various technical requirements and administrative details of an estate-planning transaction will be properly handled after the transaction is implemented. We, as estate planners, are well aware that the most brilliantly structured transaction, designed to save substantial income and transfer taxes, will only be successful if the technical requirements are followed in the ongoing administration of the vehicle.

Sophisticated estate-planning structures are by no means “set it and forget it” vehicles, and the lack of proper administration can sink a transaction and result in unexpected tax and even non-tax consequences. While practitioners may not regard these administrivia as the most cutting-edge or intellectually stimulating issues, in fact they're crucial to the success of transactions. Let's look at a select few (but by no means all) of the issues of which practitioners and clients should be mindful when administering or delegating the administration of common planning techniques after a vehicle is created and funded, as well as the related consequences for failing to do so. While these issues aren't new to these techniques, it's always helpful to periodically remind ourselves of the administrative details to ensure that they don't fall through the cracks. It's also a good idea to set expectations before or at the time of the closing of the transaction as to who will be responsible for the ongoing maintenance of these vehicles once the transaction has closed and everyone has moved on to the next set of priorities on their respective to-do lists.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

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