Stephen M. Breitstone and Jerome M. Hesch to Speak at March ACTEC Meeting

March 8, 2024 @ 12:00pm


March 8, 2024 @ 2:00pm

Meltzer Lippe Attorneys and ACTEC Fellows Stephen M. Breitstone and Jerome M. Hesch will speak on “The Impact of Real Estate Refinancings of the Preferred Partnership” on Friday, March 8, 2024 at the ACTEC March Meeting in Phoenix, Arizona.

After the preferred partnership is formed one needs to address the income tax impact from distributions of cash from future financings of the partnership’s real estate that occur while the client is alive. If these future cash distributions from the refinancings of the partnership’s real estate are made to the preferred partner, the income tax treatment of these distributions can increase the preferred partner’s negative capital account, increase the tax-free step-up in basis at death, and reduce the value of the preferred partnership interest that is included in the decedent’s gross estate. If future cash from refinancings are distributed to a trust owning the common partnership interest, one needs to address how to use the grantor trust income tax rules to transfer the common interest that now has a negative capital account back to the decedent to obtain a further step-up in basis at death.

The American College of Trust and Estate Counsel (ACTEC) is a nonprofit association of select lawyers and law professors skilled and experienced in the preparation of wills and trusts; estate planning; and probate procedure and administration of trusts and estates of decedents, minors and incompetents. ACTEC’s more than 2,400 members, called “Fellows,” practice throughout the United States, Canada and other foreign countries. Meltzer Lippe is proud to be the home of five ACTEC Fellows.

Learn more about ACTEC’s national and regional meetings here.