Planning for a Basis step-up at Death

Date: Tuesday, February 25, 2020
Time: 5:30pm - 8:30pm
Location: Doylestown Country Club
Speaker: Jere Doyle, Esq. - National Speaker

Different Ways to Bump up Your Cost Basis

Jeremiah Doyle - Senior Vice President, BNY Mellon Wealth Management

Planning to Obtain an Increased Cost Basis at Death.

The current estate, gift and GST tax exemption exempts all but the super-rich from Federal transfer taxes. However, the income tax remains. Numerous provisions in the Internal Revenue Code allow for a basis adjustment at death to minimize or, in some cases, eliminate gain. This session will begin by discussing those types of assets that will benefit from a basis increase. We will then discuss planning ideas to obtain an increased cost basis at death for those assets for which such an increase will be beneficial. Among the planning topics discussed will be the use of “upstream” outright gifting and gifts to grantor trusts while avoiding Section 1014(e), the importance of discretionary distribution provisions in trusts in obtaining a basis increase, how a “swap” power in a trust can aid in obtain a basis increase and the use of powers of appointment, including formula powers of appointment, to obtain a basis increase. Also, an overview of the Delaware tax trap and why that may or may not result in an increase in cost basis.

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