Thursday, November 5, 2026
11:25 AM
to
12:25 PM
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Estates and Probate Track
Presented by the Estates and Probate, and Tax Law Sections
About the Program
This presentation examines the gift tax consequences that can arise when irrevocable trusts are modified or terminated. Drawing on the Tax Court's recent decisions in Estate of Anenberg and McDougall, it explores who bears gift tax liability when trusts are restructured, how the QTIP fiction applies (and doesn't) to different parties, considerations in decanting or modifying special needs trusts, and what practitioners should consider before advising clients to consent to or participate in trust modifications.
You Will Learn
• About the three broad categories of irrevocable trust modifications (trustee action, judicial action, and nonjudicial agreement) and the transfer tax risks associated with each
• How to analyze the gift tax framework established by Anenberg and McDougall for QTIP trust terminations, including why surviving spouses are generally not treated as making gifts but remainder beneficiaries may be
• How to evaluate the estate tax implications under §§ 2035 and 2036 when grantors consent to trust modifications
• How to recognize when a trust modification may trigger gift tax for beneficiaries, including modifications that add tax reimbursement clauses, alter beneficial interests, or involve consent or failure to object
• How to recognize potential issues in modifying decanting or modifying special needs trusts
Who Should Attend
This presentation is designed for estate planning and trust attorneys, tax advisors, fiduciary counsel, and trust officers who advise clients on the modification, termination, or restructuring of irrevocable trusts.
Credit
CT: 1.0 CLE Credit (General)
NY: 1.0 CLE Credit (AOP)
1.0 Paralegal CE Credit (General)
The Connecticut Bar Association/CT Bar Institute is an accredited provider of New York State CLE. This program qualifies for newly admitted and experienced attorneys CLE credits.
Attorneys seeking NY CLE credit who have been admitted to the New York State Bar for two years or less must attend the live seminar for skills or ethics credit, a fully interactive videoconference, or simultaneous transmission with synchronous interactivity. Diversity, Inclusion and Elimination of Bias CLE credits are only available as non-transitional credits.
For further information please see the NYCourts.gov page on CLE: http://ww2.nycourts.gov/attorneys/cle/index.shtml.
The CBA CLE financial aid policy is available here. Please contact tgenung@ctbar.org to request financial aid to attend this CLE program.