Trust Modifications and Decanting after IRS CCA 202352018: When “Consent” Becomes a Taxable Gift and a Lawsuit

1:00 p.m. – 1:05 p.m.

Welcome and Introduction

1:05 p.m. – 1:55 p.m.

Trust Modifications and Decanting after IRS CCA 202352018: When “Consent” Becomes a Taxable Gift and a Lawsuit

Converts IRS CCA 202352018 into a litigation roadmap by outlining what counsel can do with “beneficiary consent” theories and how fiduciaries and drafters can structure modifications, decantings, and court approvals to mitigate gift, estate, and GST exposure.

Learning objectives:

• Translate CCA 202352018’s reasoning into risk tests for NJSAs, decantings, and trust protector amendments.
• Design approval and notice processes to reduce “gratuitous transfer” narratives and preserve defenses.
• Spot downstream reporting/penalty/valuation issues (including how to value “surrendered” interests).
• New York practice is heavy on court-approved settlements and trust restructurings—exactly where “consent” and fiduciary duty intersect. CCA 202352018 is not a revenue ruling—but it is a preview of IRS litigation arguments.

Speakers: 

Ross Katz, Esq., Schlesinger Lazetera & Auchincloss LLP, New York, NY

Jennifer G. Flannery, Esq., Barclay Damon LLP, Buffalo, NY

1.0 Credit in Areas of Professional Practice 

1:55 p.m. – 2:00 p.m.

Q&A