Description

Trust Taxation Workshop is designed for experienced tax professionals who prepare and review fiduciary returns. The program builds from fiduciary accounting income through the preparation of Form 1041, including the allocation of direct and indirect expenses, the computation of distributable net income and the income distribution deduction, and the reporting of beneficiary K-1 items. It then examines trust agreements and the different categories of trusts, including special use and grantor trusts.

Through an interactive approach that includes instructor-led discussion, case studies, and group discussion, participants will apply fiduciary taxation concepts to practical scenarios and strengthen their ability to analyze trust and estate tax issues, identify appropriate tax treatment, and navigate the complexities of preparing and reviewing Form 1041.

Learning Objectives

Explain the role, responsibilities, and common challenges of a fiduciary within the context of trust and estate taxation.
Apply fiduciary accounting income principles to classify receipts and disbursements between income and principal.
Analyze trust and estate expenses to allocate direct, excess direct, and indirect expenses appropriately on Form 1041.
Compute distributable net income and the income distribution deduction for a fiduciary entity, and allocate taxable and tax-exempt items to beneficiaries for Schedule K-1 reporting.
Identify the roles of donor, beneficiary, trustee, and successor trustee, and describe the structure and purpose of a trust agreement.
Differentiate among the principal types of trusts, including charitable trusts, life insurance trusts, and trusts holding S corporation stock, and explain their income and estate tax implications.
Distinguish the circumstances that trigger grantor trust treatment and evaluate the reasons a taxpayer may seek grantor-type taxation.