Day One

8:15 – 8:30 Registration

8:30 – 8:45 Introduction and Announcements

8:45 – 10:15 Top 10 Things You Should Know About The New Trust Law

Overview of PA’s trust law
1. Default rules
2. spendthrift clause
3. notice and reporting requirements
4. revocable trust as will substitute
5. creation and validity of trusts
6. bond

7. representation
8. statute of limitations
9. trustee compensation
10. trust modification or termination
Formation of a trust
Proper funding of a trust

10:15 – 10:30 Break

10:30 – 12:00 Trust Taxation - 1041

Definitions
Overview
Taxation of estates and trusts
Entity creation
Final form 1040 for the decedent
Form 1041- income tax return for estates and trusts

Grantor trusts
Income in respect of a decedent(IRD)
Deductions in respect of a decedent (DRD)
Estate tax deduction
Property basis and holding periods
Total return trust

12:00 – 12:45 Lunch

12:45 – 1:00 DocuBank - Sponsor

Importance of record storage

1:00 – 2:30 Federal Estate Tax

Federal tax and gift tax basics
1. Annual exclusion
2. lifetime exemption
3. special use valuation
4. filing form 706 and 704
 

Use of ILIB
- Overview of trust/purpose
- Proper drafting of Trust
- Implementation of trust
- Review of the law

Credit Shelter Trusts
- Overview of trust/purpose
- Proper drafting of Trust
- Implementation of trust
- Review of the law

2:30 -2:45 Break

2:45 – 5:00 Life after the DRA

Example of Fred and Martha before and after the DRA
An analysis of regulations implementing the DRA
Examples & Case Studies
1. Income Only Trusts
- Overview of trust/purpose
- Proper drafting of Trust
- Implementation of trust
- Review of the law

2. Child Protector Trusts
- Overview of trust/purpose
- Proper drafting of Trust
- Implementation of trust
- Review of the law

Day Two

8:15 – 8:30 Registration

8:30 – 8:45 Introduction and Announcements

8:45 – 10:15 Guardianship Process

3 Case Scenarios
3 types of guardianships
1. Emergency
2. Limited
3. Plenerary
When is a guardianship needed
Incapacity
-Definition & grounds for incapacity

Paperwork to file
- Notice of Capacity
- Form 55/36
- Proper county to file in
Duties of a guardian
Powers of a guardian
- Distribution of principles
- Estate planning powers

10:15 – 10:30 Break

10:30 – 12:00 Capacity Issues – Alzheimer’s Association

Dymentia
- 3 Types
1. Delusionary
2. Infections
3. Depression

What to look for & proper diagnosis
Screening tools
7 Stages of Alzheimer’s Disease
Caregiver concerns
Care options

12:00 – 12:45 Lunch

12:45 – 1:00 A Note from Our Sponsor - ??

1:00 – 2:30 Pennsylvania Inheritance Tax

Definitions
Inheritance Tax, Generally

Probate v. Nonprobate Property
- Avoiding probate is not the same as avoiding Pennsylvania inheritance tax.
- Some nonprobate property is subject to Pennsylvania inheritance tax.
- Joint tenancy with right of survivorship
- Tenancy in common
- Tenancy by the entireties
- Trust accounts
Pennsylvania Inheritance Tax Rates
Valuation of Property Subject to Pennsylvania Inheritance Tax
- Valuation date
- Valuation method
Property Subject to Pennsylvania Inheritance Tax
- Joint tenancy with right of survivorship

Example 1: Joint tenancy scenario and tax computation
Example 2: Joint tenancy scenario and tax computation

- Inter vivos transfers made within one year of transferor’s death

Example 1: Inter vivos transfer scenario and tax computation

Example 2: Inter vivos transfer scenario and tax computation

- Annuities
- Employee benefit plans
- Trusts
- Personal property

Property Not Subject to Pennsylvania Inheritance Tax
- Life insurance

Deductions
Payment of Pennsylvania Inheritance Tax
- Tax apportionment clause in last will and testament
Who Must File a Pennsylvania Inheritance Tax Return
When, Where, and How to File a Pennsylvania Inheritance Tax Return

2:30 -2:45 Break

2:45 – 5:00 Special Needs Trusts

Three types of special needs trusts
1. Common law – Third party funded
2. Self-funded special needs trust
3. Pooled trust

Overview of Special Needs Trusts

- Structured settlements
- Act 42 of 2005
- Deficit reduction act of 2005
- Pre-approval of special needs trust by department of public welfare
- Medicare part D drug plan for “dual eligibles” who also receive medical assistance
- Fixing “broken” trusts
- Rapid spend down

- How does a court “create” a trust where no parent or grandparent or guardian is
available?
- Social security administration idiosyncrasies
- Payments for in-kind-support and maintenance
- Payments to family and caregivers
- Purchase of homes
- Expansion of the pool of available, competent corporate trustees since 1993
- Investment companies
Choice of a trustee
Some common misconceptions
Frequently Asked questions