Working Through the Knight (Opinion) CLE

The American Bar Association Section of Real Property, Trust and Estate Law, Section of Taxation, and the ABA Center for Continuing Legal Education are sponsoring a teleconference and live audio webcast on March 20, 2008 entitled Working Through the Knight (Opinion): The Supreme Court Applies the “2% Floor” to Trustees.

Here is a description of this program:

The Supreme Court has resolved 17 years of litigation by holding that investment advisory fees of a state or trust are generally subject to the “2% floor” of IRC section 67, unless the trustee can show that an individual owner of property would not commonly incur that cost. This is an issue of keen and widespread interest to fiduciaries and tax return preparers.

This presentation will focus on:

• What the Supreme Court’s ruling covers
• What room there still might be for full deduction of fiduciary expenses
• What fiduciaries should do in preparing 2007 tax returns
• What fiduciaries should consider in preparing for the future
• What to make of the vexing issue of “unbundling” unitary fiduciary fees
• What effect proposed regulations, Notice 2008-32, and soon-to-be-issued final regulations will have
• How to meet the burden of proof on what an individual owner would “commonly” do with the same property