Home Using Your Estate Planning Partnership to Reduce Federal Income Taxes

Using Your Estate Planning Partnership to Reduce Federal Income Taxes


“With the reduction of the top estate tax rate to 40%, and the highest marginal income tax rates approaching the estate tax rate, or even exceeding the estate tax rate, especially when state income taxes are taken into account, the concern has now shifted to whether an individual should retain ownership of appreciated assets at death to obtain the income tax-free step-up in basis at death. The first part of this presentation evaluate[s] the factors to examine in deciding whether or not to shift assets with built-in gain and assets with the potential for appreciation in value out of the estate. The second part of this presentation examine[s] the available techniques that use partnerships to bring back into a decedent’s estate appreciated assets without increasing the size of the decedent’s taxable estate. The third part cover[s] some income tax deferral techniques for taxpayers who intend to sell appreciated assets while they are living. These income tax deferral techniques rely on the special rules that apply only to partnerships and S corporations.”

Jerome M. Hesch, Miami, Florida serves as a tax and estate planning consultant for lawyers and estate planning professionals throughout the country and is Special Tax Counsel to Oshins & Associates in Las Vegas Nevada. He is the Director of the Notre Dame Tax and Estate Planning Institute, on the Tax Management Advisory Board, a Fellow of American College of Trusts and Estates Council and the American College of Tax Council, has published numerous articles, Tax Management Portfolios, and co-authored a law school casebook on Federal Income Taxation, now in its fourth edition. He has presented papers for the University of Miami Heckerling Institute on Estate Planning, the University of Southern California Tax Institute, the Southern Federal Tax Conference, and the New York University Institute on Federal Taxation, among others. He participated in several bar association projects, including the Drafting Committee for the Revised Uniform Partnership Act and preparing the ABA’s comments on the IRS’s proposed private annuity regulations. He received his BA and MBA degrees from the University of Michigan and a JD degree from the University of Buffalo Law School. He was with the Office of Chief Counsel, Internal Revenue Service, Washington, D.C. from 1970 to 1975, and was a full-time law professor from 1975 to 1994, teaching at the University of Miami School of Law and the Albany Law School, Union University. He is currently an adjunct professor of law, teaching courses at the Florida International University Law School, the Graduate Program in Estate Planning at the University of Miami, the On-Line LL.M. Program at the Boston University Law School and the Vanderbilt Law School. Having grown up in Buffalo, NY, he remains a Buffalo Bills fan.