Friday, October 28, 2011

7:30 a.m.   Registration and Continental Breakfast

8:15 a.m. -
Welcome and Introduction of Dean Irma Russell
J. Martin Burke

8:30 a.m. - 10 a.m.
Estate & Gift Tax Update with Current Planning Considerations in Light of Recent Changes
James Delaney and Elaine Hightower Gagliardi
Professors Gagliardi and Delaney will discuss recent legislative, judicial and administrative developments related to federal wealth transfer taxes and suggest planning strategies to address these developments. Among other matters, they will address key planning ideas and concerns related to the formation of Family Limited Liability Companies and Family Limited Partnerships and the subsequent transfer of interest in such entities. They will also discuss marital planning and portability of a deceased spouse’s unused exclusion amount. In addition, Professors Gagliardi and Delaney will address way of avoiding pitfalls in relation to the IRS’s recent focus on administrative deductions for estates.

10:00 a.m. -10:15 a.m. Break

10:15 a.m. - 11:00 a.m.
Income, Estate and Gift Tax Fundamentals of Charitable Giving
E. Edwin Eck
Professor Eck will address a range of fundamental considerations associated with charitable giving including (1) the tax aspects of charitable gifts of cash, real property, securities, life insurance, and retirement benefits; (2) the use of various split interest gifts, including charitable remainder trusts, pooled income funds, charitable lead trusts, charitable gift annuities, and gifts of remainder interest in a residence or a farm; and (3) the use of planned gifts to obtain Montana’s Qualified Endowment Tax Credit.

11:00 a.m. - 12:00 p.m.
Family Limited Partnerships Revisited
Kristen Juras
The 2011 Montana Legislature adopted the Revised Uniform Limited Partnership Act, which becomes effective October 1, 2011. The Revised Act expands the shield of liability for bot limited and general partners, bringing renewed interest in the limited partnership as a vehicle for business and estate planning purposes. Professor Juras will review the major changes made by the Revised Uniform Limited Partnership Act and will discuss the income and estate tax advantages that may be achieved through the use of family limited partnerships.

12:00 p.m. - 1:00 p.m. Lunch
This year’s Tax Institute lunch is generously hosted by The Montana Community Foundation.

1:00 p.m. - 2:00 p.m.
Now You See It, Now You Don’t: The Comings and Goings of Disregarded Entities
Martin J. McMahon, Jr.
While state law recognizes an LLC as a distinct type of entity, an LLC is not a distinct entity for federal tax purposes. An LLC that has two or more owners is treated as either a corporation or a partnership, while an LLC with a single owner will be disregarded for federal income tax purposes unless it elects to be treated as a corporation. This session will examine the tax consequences of (1) the formation and dissolution of single member LLCs, (2) the addition of a second member to an LLC, which converts a disregarded entity into a partnership, (3) the reduction of the number of members of an LLC from two or more to one, which converts the LLC from a partnership into a disregarded entity, (4) the election by a LLC to be taxed as a corporation and the revocation of an election by an LLC to be taxed as a corporation, (5) the merger of a single member LLC into another LLC, and (6) the merger of an LLC into a corporation. If time permits, there also will be discussion of Qualified Subchapter S Subsidiaries (“Q Subs), which are another variety of disregarded entity.

2:00 p.m. - 2:20 p.m. Break

2:20 p.m. - 3:20 p.m.
Breaking Up Is Hard To Do: Liquidation of Partnerships or a Partner’s Interest
Daniel Simmons
Professor Simmons will examine the federal income tax consequences to partners and partnerships on distributions in termination of a partner’s partnership interest and distributions that liquidate a partnership. He will discuss the basic provisions for taxation of the recipient partner, basis provisions, the affect on continuing partners, and touch briefly on the complications of hot assets.

3:20 p.m. - 3:25 p.m. Stretch Break

3:25 p.m. - 5:00 p.m.
Annual Income Tax Update
Sam Donaldson
In this dynamic world of ever-changing tax laws, it is comforting to have a constant - someone who can help make sense of the chaos and find order amidst the various sunsets, delayed effective dates, indexing, and phase-outs. That someone is Professor Sam Donaldson. Donaldson returns again this year with a summary of the significant federal tax cases, rulings, regulations and legislation from the past 12 months. As Professor Donaldson quipped in accepting our offer to speak again this year: “Maybe this time I’ll get it right.”

5:00 p.m. - 6:15 p.m. Hosted Reception
This reception is generously hosted by U.S. Bank.

Saturday, October 29, 2011

8:15 a.m. - 9:15 a.m.
What to Expect When the Unexpected Happens - Procedures and tips for Surviving an IRS Audit
Ann Murphy
Your client loses the IRS lottery game and is selected for an audit. What next? Professor Murphy will provide advice for helping your client through what can be a stressful, long and confusing process. She will discuss the IRS audit procedure and survival tactics.

9:15 a.m. - 10:15 a.m.
Practical Uses of Life Insurance in Business Planning
Richard Watson
Life insurance can play a critical role in the estate ad business planning for owners of closely-held businesses. Mr. Watson will explore practical and technical aspects of using popular life insurance techniques in business succession planning, including funding for buy-sell agreements, deferred compensation, split dollar, premium financing, and irrevocable life insurance trust (ILIT) planning for owners of closely-held stock.

10:15 a.m. - 10:30 a.m. Break

10:30 a.m. - 11:30 a.m.
Damages and Taxes
J. Martin Burke and Gary Randall
Section 104(a) excluding damages received on account of personal physical injury or physical sickness has been the subject of more case law and administrative rulings in the last five years than most provisions of the Internal Revenue Code. With respect to Section 104(a)(2), Professors Burke and Randall will examine the recent case law and administrative rulings focusing on the meaning of “physical injury” and “physical sickness”, the allocation of damage awards, and the treatment of punitive damages, interest and attorneys fees. They will address a range of planning considerations including the drafting of settlement agreements and structured settlements. In addition to personal injury awards, Professors Burke and Randall will address the taxation of certain non-excludable damage awards, including those for breach of contract.

1:05 p.m. Kickoff - The University of Montana vs. Weber State

The 59th Annual Tax Institute is generously supported by: