Texas Chapter - Estate Planning Considerations Impacting Real Estate

Kevin Shahan

CPA, San Saba

Planning Ahead for Upcoming Changes to the Lifetime Gift & Estate Tax Exemption

·       Current exemption limits are set to expire December 31, 2025

·       Individual Exemptions of $13.6M are set to be decreased to approximately $6M based on inflation adjustments

·       Now is the time to consider your options

Corina Rodriguez

This presentation will be focused on the key instances where an attorney would be advising their clients to obtain an appraisal in relation to estate planning and probate matters. We will be discussing possible pitfalls for appraisals being used in these contexts and what an attorney is looking for in reviewing final documents. Specifically, we will be discussing appraisals as they relate to:

Estate Planning

•  Conservation Easements
• Inter Vivos Gifts
• Funding into or distributing out of a business entity

Probate

•       Determining a date of death value and step-up in basis
•       Filing Estate Tax Returns
•        Electing Portability

Corky Kuhlman

TPWF

Basic introduction and definition of conservation easements

•   Property owner objectives/motivations for conservation easements
• Easement holder objectives/motivations for conservation easements Conservation easement language considerations
•  Appraisal and brokerage considerations when working with encumbered real estate.

Jeff Smitherman

Trusted Capital Partners a Registered Representative of Saxony Securities

Delaware Statutory Trusts

The role of Delaware Statutory Trusts (DSTs) as replacement property in 1031 exchanges. The presentation will include an explanation of Delaware Statutory Trusts, how they qualify for 1031 exchange treatment (including a review of 1031 exchange requirements as needed) within the framework of rural land and farm and ranch property owner demographics with example applications of features and benefits.

Todd Lewis, CPA, CVA

Oliver, Rainey & Wojtek

Real Estate Appraiser Role in the Business Valuation Process

• Real Estate Appraisal Report, the Starting Document
• Assumptions: Fee Simple, Limited Partnership Structure (LP)
• Minority Interest Gifting of LP Interest
•  Partnership Agreement Analysis
• Holding/ Operating Company
• Approaches to Value
• Purpose of Engagement
• Types of Reports
• Sources of Information
• Economy Analysis
• Industry Analysis
• Discount for Lack of Control
•  Discount for Lack of Marketability
•  Valuation Disputes - Cases

Casey Burns

Burns Law Office PLLC

•  Real Estate Ownership structures & Estate tax ramifications.
• Using family limited partnerships (FLPs) and limited liability companies (LLCs) to own real estate as a strategy to reduce estate and gift tax liability.
• The basics of forming FLPs and LLCs under Texas law to hold real estate. 
•  The non-tax benefits of FLPs and LLCs.
• How FLPs and LLCs can reduce estate and gift taxes.
• The risks and pitfalls of using FLPs and LLCs.
• The importance of real estate appraisals in supporting the valuation of FLP and LLC interests.

ASFMRA Members

$300 before 10/16; $350 after 10/16

TALB Members

$300 before 10/16; $350 after 10/16

Non-Members

$350 before 10/16; $400 after 10/16

Wednesday Chapter Dinner

$30 – this is not included in the registration fee

Student Registration

Free; Contact Carman