Course BA 4359-Estate Planning

Professor Lisa Gibson, J.D.

Term Spring 2011
Tuesday/Thursday 11:30-12:45
Meetings
SOM 1.107

Professor’s Contact Information

Office Phone TBA
Other Phone N/A
Office Location TBA
Email Address lmg106020@utdallas.edu
Office Hours Tuesdays & Thursdays 1:00-3:00
Other
E-mail is the best way to contact me.
Information

General Course Information

Pre-requisites,
BA 4350 (Personal Financial Management and Planning) and AIM
Co-requisites, &
3351 (Individual Income Tax)
other restrictions
This course provides a basic understanding of the estate and gift tax
system, including planning strategies. It addresses the transfer,
Course administration, and taxation of property within the estate planning
Description context. Topics include transfers of property outright or with trusts,
wills, and powers of appointment; use of the marital deduction;
valuation of assets; and buy-sell agreements.
Students will be able to understand, explain, analyze and evaluate
estate planning needs and taxation and recommend appropriate
techniques for meeting estate planning and objectives, including:
(1) understanding the effects of lack of estate planning, including
state laws of intestacy (2) project estate taxation and liquidity needs
Learning in various situations (3) be able to explain the probate system,
Outcomes including its purpose and pros and cons (4) understand and
recommend appropriate techniques for charitable giving during life
and as part of an estate plan (5) evaluate a client’s situation and
available estate planning strategies and techniques to recommend
an appropriate plan to meet client objectives; monitor and
recommend modifications based on changing circumstances.
Required Texts & Materials on Family Wealth Management, William J. Turnier and
Materials Grayson M.P. McCouch, West Publishing (2005)
Black’s Law Dictionary (You may find it useful to have a law
Suggested Texts,
dictionary on hand when reading the textbook.)
Readings, &
Tools and Techniques of Estate Planning, Stephen R. Leimberg, et
Materials
al. (14th edition)
Assignments & Academic Calendar—all reading assignments are from the course
textbook, Materials on Family Wealth Management.
Introduction to Property and Succession and the Purpose of
Estate Planning: 74-82 (purpose of estate planning, impediments
1/11 to estate planning, ethics, establishing client goals and needs;
overview of the probate system, role of personal representative, will
contests, professional responsibility)
Estate Administration and Intestacy: 82-99 (overview of estate
1/13 administration process, role of the probate system (pros and cons),
intestate succession)
Wills: 100-115 (execution of and requirements for a valid will,
1/18
holographic wills, revocation)
Wills and Will-Substitutes: 115-131 (interpretation, gifts, lapse,
1/20 omitted heirs, will contracts, will-substitutes, beneficiary
designations, unauthorized practice of law)
Will-Substitutes and Marital Property: 131-143 (revocable
1/25
trusts, community v. separate property)
Trusts: 144-157 (creation, transfer of a beneficiary’s interest:
spendthrift trusts, support trusts, discretionary and self-settled
1/27
trusts; successive beneficial interests, fiduciary discretion, class
gifts, powers of appointment, Rule Against Perpetuities)
Trusts, cont. 157-162 (fiduciary duties (loyalty, impartiality,
2/1
prudence), modification/termination of trusts) & Exam I review
2/3 Exam I
Income Tax Overview: 163-179 (income tax introduction and
2/8
overview, income in respect of a decedent)
Income Tax Overview: 180-199 (overview of exclusions and
2/10
deductions, income tax treatment of charitable contributions)
Tax Basis: 221-227 (cost basis, property acquired by gift, property
2/15 acquired from a decedent, basis adjustments (for gift taxes paid and
where basis exceeds FMV))
Tax Paying Entities, Income Taxation of Trusts, Federal
Wealth Transfer Taxation: 241-246, 264-277 (kiddie tax,
2/17 cumulative nature of the transfer tax system; split gifts, unified
credit, calculating estate and gift taxes, annual exclusion, filing
requirements, advantages of lifetime giving, basis considerations)
Gift Tax: 277-286 (GRIT, GRAT, GRUT (grantor retained interest
2/22
trusts), gift tax liability and penalties)
Gift Tax: 286-298 (income interests, valuations of annuities,
present, future, contingent and remainder interests; common law
trusts, GRIT, GRAT, GRUT, and anti-freeze/zero value
2/24 compliance; closely-held business interests, buy-sell agreements,
donative ―intent‖ and consideration, annual exclusion, gift
planning, gifts to minors, marital and charitable deductions, powers
of appointment, spousal gifts, Crummey trusts, special use valuation
 (§2032A)
Estate Tax: 299-315 (calculating the gross estate, valuation,
3/1 property owned at death, retained interests, estate tax liability and
penalties)
Estate Tax: 315-329 (gross estate continued, deductions and
credits, state death taxes, planning techniques/tools, powers of
3/3 appointment, QTIP, charitable remainder and charitable lead trusts
(CRAT, CRUT, CLAT, CLUT), ILIT’s and Crummey powers,
QPRT, deductions and unified credits)
3/8 Catch up and Exam II Review
3/10 Exam II
3/15 Spring Break—no class
3/17 Spring Break—no class
3/22 Generation Skipping Transfer Tax, Taxation of Trusts: 330-337
Gift/Estate Tax Calculation Projects Due; Life Insurance: 490-
3/24 510 (types of life insurance, term v. permanent, key person
insurance, terms of life insurance contracts)
Life Insurance, cont.: 512-529, 543-544 (interests, beneficiary
3/29 designations, creditors’ rights, impact of community property laws,
providing liquidity, calculating life insurance needs)
3/31 Disability Insurance: 547-561 (use in closely-held businesses)
Retirement Planning: 568-579, 579-585 (assessing needs and
4/5
planning, Social Security Benefits)
Tax Sheltered Retirement Savings: 588-596, 599-603, 616-623
4/7 (defined contribution, defined benefit plans, non-employer
sponsored retirement plans
4/12 Distributions from Retirement Plans 644-663
Elder Law—Planning for Incapacity 666-682 (guardianships,
conservatorships, advanced medical directives, financial and
4/14
healthcare durable powers of attorney, living wills, death with
dignity, natural death declarations and do not resuscitate orders)
4/19 Elder Law—Long Term Care Insurance: 705-721
4/21 Elder Law—Medicaid: 721-737
Credit, Debt and Asset Protection—Property Ownership and
4/26
Asset Protection Trusts: 782-798
4/28 Estate Plan Projects Due; Final Exam review
TBA Final Exam—TBA

Course Policies
Your grade in this class will be based on the following:
Grading
Project I (estate/gift tax calculation): 15%
(credit)
Project II (estate plan): 15%
Criteria
Exam I: 20%
Exam II: 20%
 Final Exam: 20%
Attendance and participation: 10%

Letter grades will be assigned as follows: 90-100 = A, 80–89 = B, 70-

79 = C, 60–69 = D, and below 60 = F.
There will be no make-up exams except for approved absences.
Make-up Approved absences include death (of a close relative), serious illness
Exams (you), religious events, or participation in a University of Texas at
Dallas sanctioned athletic event.
Extra Credit There is no extra credit for this class.
Projects and assignments are due at the end of class on the due date.
Late Work
Late work will not be accepted.
There will be two projects in this class. One project will be an
Special estate/gift tax calculation; the other project will be to write a
Assignments comprehensive estate plan for two couples with different financial
needs. Both projects will be discussed in more detail in class.
Your attendance and participation in class discussion is expected (and
Class encouraged) in this class. You should be prepared to discuss the topic
Attendance of the day when called on and you should feel free to volunteer your
thoughts and questions during the class.
Please turn off your cell phone before class. You may use your laptop
Classroom
to take notes in class; however, if it becomes a distraction to you or
Citizenship
other students, I reserve the right to revoke this privilege.
Off-campus, out-of-state, and foreign instruction and activities are
subject to state law and University policies and procedures regarding
Field Trip
travel and risk-related activities. Information regarding these rules
Policies
and regulations may be found at the website address
Off-Campus
http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm.
Instruction &
Additional information is available from the office of the school dean.
Course
Below is a description of any travel and/or risk-related activity
Activities
associated with this course.

If you experience any problems with your UTD account you may send
Technical
an email to: assist@utdallas.edu or call the UTD Computer Helpdesk
Support
at 972-883-2911.

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have rules and regulations for the orderly and efficient conduct of their
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 the procedures of recognized and established due process. Procedures
are defined and described in the Rules and Regulations, Series 50000,
Board of Regents, The University of Texas System, and in Title V,
Rules on Student Services and Activities of the university’s Handbook
of Operating Procedures. Copies of these rules and regulations are
available to students in the Office of the Dean of Students, where staff
members are available to assist students in interpreting the rules and
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http://www.utdallas.edu/judicialaffairs/UTDJudicialAffairs-
HOPV.html

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Scholastic Dishonesty, any student who commits an act of scholastic

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Academic is not limited to cheating, plagiarism, collusion, the submission for
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for details). This course will use the resources of turnitin.com, which
searches the web for possible plagiarism and is over 90% effective.

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(Policy Memorandum 84-I.3-46). For more information about the fair
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http://www.utsystem.edu/ogc/intellectualproperty/copypol2.htm

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Withdrawal
followed. It is the student's responsibility to handle withdrawal
from Class
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any student. You must do the proper paperwork to ensure that you will
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Student
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Grievance
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Procedures
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the grievance must be submitted in writing to the respondent with a
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 resolved by the School Dean’s decision, the student may make a
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course work has been completed. An incomplete grade must be
Incomplete
resolved within eight (8) weeks from the first day of the subsequent
Grades
long semester. If the required work to complete the course and to
remove the incomplete grade is not submitted by the specified
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Services before the exam of any testing accommodations that will be needed.
Disability Services is located in Room 1.610 in the Student Union.
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(972) 883-2098.

Guidelines for documentation are located on the Disability Services

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other required activities for the travel to and observance of a religious
holy day for a religion whose places of worship are exempt from
Religious Holy property tax under Section 11.20, Tax Code, Texas Code Annotated.
Days
The student is encouraged to notify the instructor or activity sponsor as
soon as possible regarding the absence, preferably in advance of the
assignment. The student, so excused, will be allowed to take the exam
 or complete the assignment within a reasonable time after the absence:
a period equal to the length of the absence, up to a maximum of one
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These descriptions and timelines are subject to change at the discretion of the
Professor.