1:00 pm – 2:00 pm EDT
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Private equity principals face unique estate planning opportunities and challenges. However, the speculative nature of their investment returns makes it possible for them to transfer future growth with little or no gift tax cost. The nature of those future returns makes it likely that their estates, without careful planning, will face difficult liquidity issues.
The year 2012 offers an unparalleled opportunity to begin the process of estate planning. Until the end of the year an individual can give away $5.12 million worth of assets without any gift tax exposure and can protect these gifts from estate and generation-skipping transfer taxes for generations to come. The gift and generation-skipping transfer tax exemptions that make this possible are scheduled to disappear on December 31, 2012.
McDermott Will & Emery is pleased to present a complimentary webcast focused on estate planning issues unique to partners, managing directors and principals at private equity firms. Topics to be covered include:
- Understanding the three federal transfer taxes—the estate tax, the gift tax and the generation-skipping transfer tax—in the context of private equity firms
- Considering the costs of delaying or not planning
- Discussion of common approaches and related issues
- How to use the vertical slice rule to avoid the gift tax risk under section 2701 of the Internal Revenue Code
- Dealing with the incomplete gift risk for transfers of unvested interests
- Avoiding the income tax risk of transferring carried interests
- Protecting management fee offset arrangements from gift tax risk
- Keeping investment control without estate tax risk
Carlyn McCaffrey, Partner
Jay Rivlin, Partner
McDermott Will & Emery is recognized as the go-to firm for high net worth individuals, families and closely held businesses for all significant facets of wealth planning around the globe and has been named by prestigious organizations as the top private client practice in the United States and among the top practices worldwide. Our private equity practice is nationally recognized for its capabilities to provide exemplary services to the full range of participants in the private equity market —sponsors, investors, lenders, managers and portfolio companies—and for our unique ability to provide a full-service approach leveraging our highly recognized practices to address the associated issues that may arise during a private equity transaction.
For more information, please contact McDermott Events.
CLE credit for the live presentation of this program is pending in the following states: California, Illinois, New York and Texas. A Uniform Certificate of Attendance will be made available to participants requesting CLE credit in all other states. Please be advised that CLE credit will not be approved for on demand/recorded viewings of this program in the states listed above. Attendees seeking credit in other states should consult their state CLE accrediting agency to determine whether self-study credit can be earned for on demand/recorded viewing of this program.