Reciprocal Trust Doctrine: Practical Tips for Successful Planning in the New Environment

Despite the election results, estate planning, and in particular non-reciprocal SLAT planning should continue for many clients. The results of future elections cannot be predicted. Upstream basis planning, asset protection, non-grantor trusts and other mechanisms provide benefit apart from estate tax benefits. When crafting SLAT plans the Reciprocal Trust Doctrine is often employed by the IRS to challenge clients’ planning. There are steps that practitioners can recommend to their clients to mitigate the possibility of the IRS successfully asserting the Reciprocal Trust Doctrine on audit. There is no bright line test to guarantee that two trusts will not be reciprocal, so that the safer approach is to differentiate the trusts in as many practical ways as feasible, and which the client finds palatable. This program will explore the case law and theory of the Reciprocal Trust Doctrine and recommend practical steps that practitioners might consider.

Speakers: Robert S. Keebler, CPA, Alan Gassman, Esq., Jonathan G. Blattmachr, Esq. and Martin M. Shenkman, Esq.

Sponsors: Peak Trust Company, Interactive Legal and Shenkman Law

*This may constitute attorney advertising.

* No CPE, CLE, etc. is offered but a certificate of attendance will be provided.