TITLE SPONSOR Thank You
Cardinal Trust
Sutin, Thayer & Browne, APC
Pregenzer, Baysinger, Wideman & Sale, PC
Traub Law NM, PC
UMB Bank
Agenda
Wednesday MARCH 4 2026
There will be a 5-10 minute break between each session.
8:00am 8:55am 9:10–10:10am 10:15–11:15am
11:20am–12:20pm
Breakfast & Check-In
Opening Remarks
Albuquerque Community Foundation & Empire Trust
Takeaways from the 60th Heckerling Institute
Ken Leach, Roybal-Mack & Cordova, PC
Elder Law & Estate Planning Updates in 2026
Sara Traub, Traub Law NM, PC
LUNCH
12:25–1:25pm Representing Marginalized Communities
Cristy Carbón-Gaul, The Law Office of Cristy J. Carbón-Gaul
1:30–2:30pm 2:35–3:35pm 3:45–4:45pm
Medical Aid In Dying (MAID) in New Mexico: Implications for Estate and Financial Planning
Brooke Nutting, Death Doula Professionals
Philanthropy in Estate Planning
Gerard “Roddy” Thomson, New York Life Insurance
Albuquerque Community Foundation Panel: Advantages of Donor-Advised Funds & Other Philanthropic Tools
Marisa Magallanez, President & CEO
Nick Williams, Chief Financial & Administrative Officer
Denise Nava Wyrick, VP of Communications & Operations and Interim VP of Development
Ian Esquibel, Ray Zimmer Heritage Society Member
Facilitator: Melody Wells, Major Gifts Officer
Agenda
Breakfast
Opening Remarks
Albuquerque Community Foundation
Thursday MARCH 5 2026
There will be a 5-10 minute break between each session. 8:00am 9:00am 9:10–10:10am
OBBBA Financial Planning Nuggets
Brad Justice, Justice Financial
10:15–11:15am
11:20am–12:20pm
12:25–1:25pm 1:30–2:30pm 2:35–3:35pm 3:45–4:45pm
Savvy Social Security
Brad Yablonsky, RBC Wealth Management
LUNCH
Planning for Individuals with Disabilities Panel
John Attwood, Cardinal Trust
Feliz Martone, Legal Legacy Trusts & Estates, PC
Bridget Mullins, Horton Mullins, PC
Certified Exit Planning (CEPA)
Jessica Streeter, Streeter Law Firm
Legal Ethics & Estate Planning
Jim Reist, Smidt, Reist & Keleher, P.C.
Dream Legacy to Reality with Directed Trusts
Patrick Anderson & Mike Smith, Adams Brown Trust Solutions
Kenneth “Ken” Leach
Attorney
Roybal-Mack & Cordova, PC
BIOGRAPHIES Faculty
Kenneth C. Leach completed his education through the University of New Mexico with his B.A. in History in 1972, and his JD in Law in 1975. He was then admitted to the bar by the New Mexico and U.S. District Court in 1975. He is a Fellow of the American College of Trust and Estate Counsel (ACTEC), and has been listed on Martindale-Hubbell’s Bar Register of Preeminent Lawyers.
He is a member of the University of New Mexico Law School Alumni Association, the Albuquerque Bar Association, the New Mexico Estate Planning Council and Southern New Mexico Estate Council, and a Trustee on the Board of Trustees of the Albuquerque Community Foundation. Kenneth previously served on the New Mexico Board of Legal Specialization, An Agency of the Supreme Court of New Mexico Estate Planning, Trusts & Probate Law Specialty Committee, He is presently serving on the San Juan College Foundation Board and served as President from 2019-2022. Mr. Leach served on the University of New Mexico Foundation Board (from 1995-2003), and as the Chairman of the Gift Acceptance Committee for the UNM Foundation.
Kenneth has been listed in the prestigious “The Best Lawyers in America” publication in the Trust & Estates section for 26 consecutive years (1996-2022). He was the Community Foundation of Southern New Mexico advisor for the year of 2013, and he received the Excellence in Charitable Gift Planning Award for 2006 by the Albuquerque Community Foundation.
Sara Traub
Founder Traub Law NM, PC
Sara Traub is a three-time graduate of the University of New Mexico with degrees in University Studies, Business Administration and Law. Sara is a licensed CPA and attorney admitted to practice in New Mexico and United States Tax Court.
Sara is actively involved in the State Bar of New Mexico as a long-time member and past director of the Real Property, Trust & Estate and Elder Law Sections, and recently joined the Access to Justice Fund Grant Commission. Sara also serves on committees for the New Mexico Society of CPAs. Sara has been actively involved with the Albuquerque Community Foundation for over a decade, initially participating in the Future Fund and recently completing a 3-year term as a Trustee on the organization’s Board of Trustees. In her free time, she enjoys hiking, river rafting, and spending time with family and friends.
Cristy Carbón-Gaul
Founder
The Law Office of Cristy J. Carbón-Gaul
Cristy J. Carbόn-Gaul grew up primarily in Omaha, Nebraska but considers herself a New Mexican, living in Albuquerque most of her adult life. Cristy graduated from Creighton University School of Law, cum laude. She is licensed by the New Mexico State Bar since 1997. Cristy is the owner of the Law Office of Cristy J. Carbón-Gaul. Cristy also serves as the Bernalillo County Probate Judge and is in her second term. Cristy and her husband, Daniel Gaul, founded Casa Q, which is transitional housing for LGBTQ youth. Cristy served on the Boards of Musical Theater Southwest, the APS Foundation, and Southwest Women’s Law Center, including in the role as president for these organizations.
Brooke Nutting
CPA Death Doula Professionals
Brooke Nutting is an end-of-life guide and death doula with a professional background as a CPA and entrepreneur. Her work centers on supporting individuals and families as they navigate end-of-life decisions with clarity, dignity, and informed choice. Brooke collaborates with estate planning and financial professionals to help bridge gaps between legal planning, practical considerations, and human-centered conversations around death and dying. In addition, Brooke provides non-medical bedside support to clients and families seeking in person compassionate guidance through death.
Gerard “Roddy” Thomson
Licensed Agent
New York Life Insurance
Gerard “Roddy” Thomson is a Financial Services Professional and Licensed Agent for New York Life Insurance Company in Albuquerque. He previously worked in the live music production industry. Roddy received his Bachelor of Arts from the College of Santa Fe in 2007. Roddy has been with New York Life since January 2012. Roddy has volunteered with the Special Olympics NM as a Unified Partner, and has served on the Board of Directors of the Albuquerque Museum Foundation, most recently as the Immediate Past Chair, and also currently serves on the Albuquerque Museum History Advisory Committee as well as the Investment Impact Committee at the Albuquerque Community Foundation. Roddy has been married to his wife Erika since 2008 and has two daughters, Olivia who is pursuing her career as a PGA Professional at the Oahu County Club, and Paisley Jo who is a sophomore in High School and is also a golfer. Like their dad.
Marisa Magallanez
President & CEO
Albuquerque Community Foundation
Marisa Magallanez is the President & CEO of the Albuquerque Community Foundation and New Mexico Community Trust. A mission-driven philanthropic leader with more than 20 years of experience in nonprofit management, community foundation leadership, and donor stewardship, Marisa is dedicated to strengthening community partnerships, expanding impact, and advancing equity and civic engagement across New Mexico.
During her tenure with the Foundation, Marisa has guided the organization through a period of strategic growth by developing innovative government and philanthropic partnerships, overseeing the development of its first strategic plan, and helping refresh its mission, vision, and values to reflect a modern, communitycentered approach to philanthropy.
A native of Southern New Mexico, Marisa brings deep roots, humility, and vision to her work. She believes in the power of philanthropy to bring people together and create lasting change. Marisa holds an MBA with a focus in Policy and Planning from the University of New Mexico. Outside of work, she enjoys horseback riding, hot yoga, and spending time with her dog.
Nick Williams
Chief Financial & Administrative Officer
Albuquerque Community Foundation
Nick joined the Albuquerque Community Foundation in 2016 after working as an audit manager for KPMG for five years. His time at KPMG gave him a strong accounting and internal control background. While at KPMG he specialized in the higher education and state and local government industries.
As the Foundation’s Chief Financial & Administrative Officer, he brings a deep interest in improving his community and a lasting passion for sustainable agriculture and environmental issues to his work. Nick has served as Treasurer for the Community Foundations National Standards Board through the Council on Foundations as well as serving on the Board for the NM Society of CPA's.
Denise Nava
VP of Communications & Operations and Interim VP of Development
Albuquerque Community Foundation
Native New Mexican and home grown in the small town of Silver City, Denise Nava joined the Albuquerque Community Foundation in 2014. Before entering the nonprofit arena professionally, Denise earned her Bachelor of Arts at New Mexico State University. In 2014, she earned her Master of Public Administration in Human Resources and Nonprofit Administration at the University of New Mexico.
Denise is currently the Vice President of Communications and Operations, and in her tenure at the Foundation, she revamped the Student Aid program with one-on-one communication for students and parents as well as promotion of scholarships at local high schools, increased the organization’s social media presence and engagement with the local community, and has enhanced the Foundation’s event calendar to provide more inclusive spaces for community.
In her current role at the Foundation, Denise leads strategic initiatives to enhance the Foundation's visibility and grow community support. With extensive experience in nonprofit management and a passion for community-driven philanthropy, Denise oversees marketing campaigns, donor relations and engagement, and collaborative community efforts. Denise is dedicated to building partnerships that foster meaningful impact and contribute to the Foundation's mission of improving the lives of everyone in the state of New Mexico.
Currently, Denise serves as a member on Big Brothers, Big Sisters of Central New Mexico, Rio Grande Community Development Corporation Board of Directors and Bold Futures. When not working or volunteering, Denise dances with the BreakingEven collective and freelances in writing for websites, blogs, and social media campaigns. She can also be found hanging out downtown in her neighborhood with her husband, Drew, daughter Bria, and dog, Harley.
Ian Esquibel
Ray Zimmer Heritage Society Member Oak Hill Coaching & Consulting
Faculty
BIOGRAPHIES
Born and raised in New Mexico, Ian brings 20 years of professional experience to his work with racial equity and social justice leaders, individuals who desire fulfilling roles in their families and people pursuing healthy
Melody Wells
Major Gifts Officer
Albuquerque Community Foundation
Melody has a decade of experience fundraising for nonprofits and educational institutions in Albuquerque. She is passionate about connecting more people to the deep sense of meaning and joy that can be experienced through investing in our community. She has worked with individuals, foundations and corporations to support youth services, juvenile justice reform, family support & stabilization, and health, food & nutrition-focused organizations.
Brad Justice
Wealth Management Advisor
Justice Financial
BIOGRAPHIES Faculty
Brad was born and raised in Orange County, California. He moved to Albuquerque, New Mexico in 2005 and joined the financial planning industry. He is the owner of a 9-person financial planning firm, Justice Financial, a private client group affiliate with the Northwestern Mutual Wealth Management Company. Brad has achieved prestigious industry milestones and excelled in multiple leadership roles. He and his firm have been recognized by Forbes as a best-in-state wealth advisors.
Brad focuses primarily on working with clients in the retirement income space, professionals, and business owners. They specialize in balancing both defensive and offensive financial planning strategies. He holds securities registrations in Series 6, 7, 26, and 63 in addition to eight professional designations which include the CERTIFIED FINANCIAL PLANNER™ Professional and Masters of Science in Financial Services (MSFS).
Brad is married to Lisa, and they have four wonderful children, one dog, and more than 20 box turtles that live in their backyard. They love playing board games, swimming in the pool, traveling together, and anything that involves family and friends. A fun fact about Brad is that he loves history and languages and is fluent in Portuguese.
Brad Yablonsky
Financial Advisor
RBC Wealth Management
Brad Yablonsky is a financial advisor with RBC Wealth Management. His focus is Social Security and Medicare benefits and integrating those programs with the other moving parts and puzzle pieces of retirement planning. He is originally from New Jersey and travelled to Albuquerque in 2001 “just to visit” though now proudly calls it home. He graduated from Rutgers University and holds Series 7, Series 66 and Insurance licenses. He serves on the boards of the Senior Citizens Law Office and the Impact Investment Committee for the Albuquerque Community Foundation. In his free time, Brad is a drummer and performs with a Pink Floyd tribute band called Pink Freud.
John Attwood, NCG
Sr. Vice President – Trust Officer/Business Development
Cardinal
Trust
A graduate of Oklahoma Wesleyan University, the American Bankers Association, Graduate Trust School, and a National Certified Guardian since 2006. John has worked in the fields of social and financial services for more than 20 years. In his position, John is responsible for the business development and administration of Trusts, Conservatorships, and Estates. This includes experience with support, special needs, personal injury and complex, multimillion-dollar trust accounts.
John enjoys establishing and maintaining relationships with clients, estate planning attorneys, and trial lawyers. Cardinal Trustdoes notoffer in-house investment advice; therefore, we collaborate with the clients’ preferred investment advisor to manage the trust investment assets. John is not ashamed to consider himself an “old school” trust officer.
He has worked as a medical decision-maker (National Certified Guardian since 2006) for those with disabilities, and as a corporate trust officer with banks and trust companies, where he specialized in administeringpersonal injury settlements, special needs trusts and conservatorships to enhance the lives of the elderly and injured, including quadriplegic, paraplegic, traumatic brain injured and those challenged with mental illness over the full scale of the spectrum. John has worked with several New Mexico Trial Lawyers, Guardians ad Litem and been a guest speaker/sponsor at the New Mexico Trial Lawyers Board Retreats.
John serves as Treasurer for The Arc of New Mexico, Vice-President for the New Mexico Estate Planning Council, and board member for the Parker Center for Family Business (UNM Anderson Business School). He is a proud grandfather of a sweet set of five-year-old twins and three additional, very bright grandchildren. In his free time, he loves to fish for trout in Northern New Mexico and Southern Colorado.
Feliz Martone
Founding Attorney
Legal Legacy Trusts & Estates PC
BIOGRAPHIES Faculty
Feliz MariSol Martone is a native New Mexican and the founding attorney of Legal Legacy Trusts & Estates PC, a boutique estate planning firm in Albuquerque dedicated to helping families protect loved ones and preserve their legacies. Her practice focuses on preparation of wills, trusts, powers of attorney, and business planning, with a special emphasis on special needs trusts and planning for individuals with disabilities.
A graduate of University of New Mexico School of Law, Feliz served for 18 years as a Social Security disability claimant’s attorney, advocating for individuals navigating the complex system of disability benefits. She now integrates that experience into her estate planning practice to help families address both present and future care needs with confidence and compassion.
Feliz is a frequent speaker on estate planning, special needs planning, Social Security disability, and business succession topics. She regularly collaborates with other professionals to offer free community workshops that educate the public on essential planning tools and resources.
Bridget Mullins Partner Horton Mullins, PC
Bridget serves both English and Spanish-speaking clients. She has extensive trial experience from prosecuting domestic violence, child abuse, and human trafficking cases for district and state attorney offices.
She has also worked on consumer protection issues and taught financial literacy classes. Originally from Montana, Bridget earned her master's degree in Latin American Studies with a human rights focus while financing law school through teaching undergraduate Spanish.
Jessica Streeter
Attorney Streeter Law Firm
Jessica Streeter is an experienced attorney with a strong track record of advocating for her clients in complex legal matters. A former District Court Judge and Municipal Judge, Jessica is known for her thoughtful approach to solving her clients’ legal issues.
Born in Santa Fe and raised in Las Cruces, Jessica and her husband moved back to her hometown to raise their family in the same town she grew up in. Jessica is deeply committed to her community. She regularly provides free presentations on legal issues to local organizations and sits on the Las Cruces Library Advisory Board and the Gregory Estate Planning Advisory Council for the Southern New Mexico Community Foundation.
Jim Reist
Attorney Smidt, Reist & Keleher, P.C.
Jim Reist is an attorney with Smidt, Reist & Keleher, P.C. Jim practices primarily in the areas of business law, commercial disputes, professional responsibility, and bankruptcy. Jim also practices in the areas of education, museum and telecommunications law. He currently serves as chair of the Ethics Advisory Committee of the State Bar of New Mexico and has been a member of that committee for over 15 years. He was recently appointed to serve on the State Bar of New Mexico’s Client Protection Fund Commission. He is a frequent lecturer on his areas of practice for various professional groups and organizations.
Jim earned his bachelor’s degree, with high honors, from Wright State University and his J.D. degree from The Ohio State University. He is admitted to practice before the State courts in New Mexico, the U.S. District Court for the District of New Mexico, the U.S. Court of Appeals for the Tenth Circuit, the U.S. Court of Appeals for the Ninth Circuit, and the Supreme Court of the United States.
Jim is a past-president of the Albuquerque Bar Association and is a member of the Association of Professional Responsibility Lawyers. Since 2010, he was selected for inclusion in The Best Lawyers in America in Ethics and Professional Responsibility and Education Law.
Patrick Anderson
BIOGRAPHIES Faculty
EVP, Chief Fiduciary Officer & Market Leader
Adams Brown Trust Solutions
Patrick Anderson was born and raised in Enid, Oklahoma. He graduated in 1990 from Oklahoma State University with a degree in Business Administration and in 1994 with his Juris Doctorate from the University of Oklahoma College of Law. Patrick has a background in agriculture and has been a licensed attorney in the State of Oklahoma for over 30 years. Patrick also served 12 years in the Oklahoma State Senate.
Patrick has spent over 25 years as a trust officer working with banks and independent trust companies. Patrick currently serves as the Chief Fiduciary Officer and interim CEO of Adams Brown Trust Solutions. As part of his duties, Patrick oversees the Adams Brown Trust Solution offices located in New Mexico and Oklahoma.
Patrick and his wife Kelly have been married for 34 years and they have two beautiful daughters, an above average son-in-law and an amazing 7-month-old grandson. Patrick and his wife are active in their church and spend as much free time as possible with their grandson.
Mike Smith
Managing Director
Adams Brown Trust Solutions
As Managing Director for Adams Brown Trust Solutions, Mike helps individuals and families make thoughtful decisions around how their assets are titled and structured. Through proactive planning, he has helped clients take advantage of strategies like the step-up in basis at the first spouse’s passing—saving surviving spouses thousands in capital gains taxes and providing clarity, confidence and peace of mind during important life transitions.
He received his J.D. from the University of Kansas and currently serves on the Board of Directors for Interfaith & Community Services and Prairie Star Health Center.
TOPICS Session
SESSION 1
9:10am
Day 1: MARCH 4 2026
Takeaways from the 60th Heckerling Institute
Ken Leach, Attorney
Roybal-Mack & Cordova, PC
The Heckerling Institute is put on by the University of Miami law school and is the premier estate planning conference in the country and is held annually in Orlando, Florida. Ken will be talking about the most important estate planning issues discussed at Heckerling affecting the practice of the New Mexico estate planning community.
SESSION 2
10:15am
Elder Law & Estate Planning Updates in 2026
Sara Traub, Founder
Traub Law NM, PC
This presentation will be an overview of changes impacting Elder Law and estate planning in 2026. This will include impacts of the One Big Beautiful Bill, recent proposed and final regulations, and recent court decisions on the federal level, as well as relevant state updates.
SESSION 3
12:25pm
Representing Marginalized Communities
Cristy Carbón-Gaul, Founder
The Law Office of Cristy J. Carbón-Gaul
Cristy will discuss representing individualswho are vulnerable, especially due to any type of mental capacity challenge, have all the supports they need to be well cared for during their lives and in their estate plans, including planning for children with lifelong disabilities, including mental health and addiction. She will also focus on estate planning for families with considerations for LGBTQ+ individuals and families in their estate planning and ensuring people's rights are respected.
SESSION 4
1:30pm
Medical Aid In Dying (MAID) in New Mexico: Implications for Estate and Financial Planning
Brooke Nutting, CPA
Death Doula Professionals
This presentation provides an overview of New Mexico's Medical Aid In Dying (MAID) law and its relevance to estate and financial planning conversations. Participants will gain a general understanding of how this topic may arise in client discussions, the legal framework in New Mexico, and the professional boundaries involvedwhen responding to client questions.
SESSION 5
2:35pm
Philanthropy in Estate Planning
Gerard “Roddy” Thomson, Licensed Agent
New York Life Insurance
Roddy will be discussing various charitable vehicles for estate planning purposes. Some of the pros and cons of the various ways, specifically private foundations, support organizations, and donor advised funds, and how life insurance can be used efficiently as a funding mechanism for charitable giving.
SESSION 6
3:45pm
Albuquerque Community Foundation Panel: Advantages of Donor-Advised Funds & Other Philanthropic Tools
Marisa Magallanez, President & CEO
Nick Williams, Chief Financial & Administrative Officer
Denise Nava Wyrick, VP of Communications & Operations and Interim VP of Development
Ian Esquibel, Ray Zimmer Heritage Society Member
Facilitator: Melody Wells, Major Gifts Officer
Albuquerque Community Foundation
Leadership from the Albuquerque Community Foundation will discuss the benefits of utilizing philanthropy as one valuable way for individuals and families to leave a lasting legacy while reducing the taxable value of their estates. They will also share some of the many ways that professional advisors have helped shape our community’s vibrant nonprofit sector through encouraging gifts to the Foundation that make important work possible, forever.
Session
TOPICS
SESSION 1
9:10am
OBBBA Financial Planning Nuggets
Brad Justice, Wealth Management Advisor
Northwestern Mutual
Day 2: MARCH 5 2026
OBBBA introduces a number of financial planning opportunities for clients. This presentation will review of the tax changes that impact deductions, 529 plan distributions, charitable contributions, and Roth conversions. Additional topics will include the extension of Radiation Exposure Compensation Act that could directly applies to residents of New Mexico.
SESSION 2
10:15am
Savvy Social Security
Brad Yablonsky, Financial Advisor
RBC Wealth Management
The Savvy Social Security presentation is geared towards Baby Boomers thinking about retirement. They've probably paid Social Security tax for decades. In fact, almost all of us pay-in every time we get a paycheck, yet most of us don't really understand how the system works. There are hundreds of different ways to claim, and people are leaving money on the table due to lack of education. This presentation bridges the information gap and allows for informed, educated decision making.
Topics covered include:
· When to start taking Social Security
· How much you can expect to receive
· How COLAs (Cost of Living Adjustments) affect your benefits
· The ramifications of marriage, divorce and benefits for surviving spouses
· Strategies implemented to maximize benefits
· The changes based on Congress' new “Social Security Fairness Act”
· Taxes and tax planning specific to Social Security
· How to align Social Security with the other puzzle pieces of retirement
SESSION 3 Planning for Individuals with Disabilities Panel
12:25pm
John Attwood, Sr. Vice President – Trust Officer/Business Development
Cardinal Trust
Feliz Martone, Founding Attorney
Legal Legacy Trusts & Estates, PC
Bridget Mullins, Partner
Horton Mullins, PC
Learn the ins and outs of the opportunities and challenges for estate planning with people with disabilities from three local experts. They will share their experiences doing this work through estate planning, special needs trusts, guardianship and conservatorship and more.
SESSION 4
1:30pm
Certified Exit Planning (CEPA)
Jessica Streeter, Attorney Streeter Law Firm
This program explores how traditional estate planning intersects with business exit planning for closely held business owners. Attendees will learn how the CEPA (Certified Exit Planning Advisor) framework aligns legal, tax, and financial strategies to protect legacy, maximize enterprise value, and support successful ownership transitions.
SESSION 5 Legal Ethics & Estate Planning
2:35pm
Jim Reist, Attorney Smidt, Reist & Keleher, P.C.
This presentation will cover legal ethics, broadly, as well as specific issues that can arise that complicate estate planning from an ethical perspective. From ensuring your clients present all the information relevant to their estates, to addressing conflicts between parties or capacity concerns, your ethical mindset must be supported with processes, procedures and structures to ensure success.
SESSION 6 Dream Legacy to Reality with Directed Trusts
3:45pm
Patrick Anderson, EVP, Chief Fiduciary Officer & Market Leader
Adams Brown Trust Solutions
Mike Smith, Managing Director
Adams Brown Trust Solutions
Your clients want their cake and eat it too. They want control, flexibility, tax efficiency, and the ability to maintain their relationship with their local financial advisor within their trusts. Modern trust law now makes dreams come true. In this session we will look at the Uniform Directed Trust Act and how you can make your clients dreams become a reality.
Day 1: MARCH 4 2026
SESSION 1
9:10am
Takeaways from the 60th Heckerling Institute
Kenneth “Ken” Leach
Attorney Roybal-Mack & Cordova, PC
February 2026
Heckerling 2026:
Impacts to the New Mexico Estate Planning Professional
KennethC.Leach,AttorneyatLaw
One Big Beautiful Bill Act
(“OB3 Act”)
• The “One Big Beautiful Bill Act” (Public Law No. 11921, Enacted July 4, 2025)
• enacted much of the Republican party’s domestic policy agenda.
• Emphasis on Taxes - amendments to the Internal Revenue Code consume 175 of the 330- page singlespaced OB3 ACT
• Enacting the Tax Agenda of the Republican Party is the heart of the OB3 Act
2026 top tax brackets
OB3 Income Tax Brackets Trusts and Estates
See Revenue Procedure 2025-32 for 2026 tax brackets for trusts and estates as follows: Exceeding Taxable Income Ordinary Income
Adjusted Net Cap Gain & Qualified Dividends Trusts and Estates
Taxable Income Exceeding
• $0 - $3,300: 10% Cap Gains Rate and 0% Medicare Surtax
• $3,300 - $16,000: 15% Capital Gains Rate and 0% Medicare Surtax
• Above $16,000: 20% Capital Gains Rate and % Medicare Surtax
OB3 Act provisions which are of special interest to estate planners and their clients.
Section 68 Overall Limitation on Itemized Deductions
Starting in 2026, the amount of itemized deduction otherwise allowable for the taxable year shall be reduced by 2/37 of the lesser of: (1) the amount of such itemized deductions, or (2) the amount by which the taxpayer’s taxable income (increased by the amount of itemized deductions) exceeds the dollar amount at which the 37-percent bracket begins with respect to the taxpayer.
If this applies to estates and trusts, applying the 2/37 reduction to distribution deductions means that some double taxation of trust income will result, because the amount of Distributable Net Income (“DNI”) taxed to the beneficiary under Section 652 or Section 662 is not reduced by the 2/37 reduction.
The Senior Deduction
The OB3 Act grants to a “qualified individual” (one who has attained the age of 65 before the end of the taxable year) a personal exemption deduction of $6,000. A married couple can claim two exemptions on a joint return if both spouses have reached age 65 before the close of the taxable year. This “temporary senior deduction” will be in effect from 2025 through 2028.
Senior Deduction limitations
1. If a qualified individual is married, the deduction is only available if the couple files jointly. If the spouses file separately, neither one can claim the temporary senior deduction. The OB3 Act does not allow a taxpayer to claim a temporary senior deduction for a dependent who has reached age 65 before the end of the taxable year. The deduction is limited to the taxpayer and, in the case of a joint return, the taxpayer’s spouse.
2. The amount of the temporary senior deduction is reduced once the taxpayer’s “modified adjusted gross income” exceeds $75,000 or $150,000 for a married couple filing a joint return The temporary senior deduction reduces to zero once the taxpayer’s modified adjusted gross income exceeds $175,000 ($250,000 for married couples filing jointly).
Section 163(h): Home Mortgage Interest Deduction
• The 2017 Act temporarily limited the amount of acquisition debt to $750,000 ($375,000 for a married individual filing separately) and temporarily suspended the deduction for interest paid on home equity debt. If a taxpayer borrowed $1.5 million only deduct half of the interest paid to the lender ($750,000 of the $1.5 million loan is acquisition debt and none of it qualifies as home equity debt).
• OB3 Act extends these rules indefinitely.
Section 163(h): Interest Paid on Qualified Passenger Vehicle Loans
• Section 163(h)(1) generally disallows any deduction for “personal interest” paid or accrued during a taxable year with 6 exceptions.
• The OB3 Act introduces a seventh exception, allowing a deduction of up to $10,000 in “qualified passenger vehicle loan interest,” available for taxable years beginning in 2025 through 2028.
• Phased Out for higher income taxpayers.
Section 164: Deduction for State and Local Taxes
• The 2017 Act famously limited the total deduction a taxpayer could claim for state and local taxes unrelated to the taxpayer’s trade or business or other profit-seeking activity to just $10,000
• OB3 Act retained a cap on the deduction for personal state and local taxes, now restricting the amount of the deduction to the “applicable limitation amount.” The applicable limitation amount, defined in new §164(b)(7):
• Taxable Year Beginning in Applicable Limitation Amount
SALT Deduction (continued)
• However, if a taxpayer’s “modified adjusted gross income” for 2025 through 2029 exceeds the “threshold amount,” the applicable limitation amount is reduced by 30 percent of the excess, though in no case can the applicable limitation amount dip below $10,000. Like the applicable limitation amount, the threshold amount changes from year to year:
SALT Deduction Limitations (continued)
Example: unmarried taxpayer with a modified adjusted gross income of $550,000 in 2025 could deduct up to $25,000 in personal state and local taxes paid in 2025:
The OB3 Act makes 3 significant changes to the rules for deducting charitable contributions, all taking effect as of 2026.
Section 170: Charitable Contributions
Cash Donations by Standard Deduction Taxpayers.
The OB3 Act restores the special rule from 2021 that allows individuals who do not itemize their deductions to claim a “partial” deduction for charitable contributions of cash to public charities in the computation of taxable income. While the 2021 rule allowed a maximum deduction of $300 ($600 for joint filers), the new rule permits a deduction of up to $1,000 ($2,000 for joint filers)
Charitable Deductions (continued)
Permanent Increase in Cap on Cash Contributions. The 2017 Act provided that, for cash donations made from January 1, 2018, through December 31, 2025, the applicable limit would be 60% of the donor’s contribution base. Further, cash contributions are deemed to happen before all other contributions, maximizing the chance of their deduction. This rule is now made permanent.
Charitable Contribution Floors. Last, new Section 170(b)(1)(I) imposes a 0.5-percent floor on donations by individuals. Specifically, an individual can only deduct otherwise allowable charitable contributions to the extent such contributions, in the aggregate, exceed 0.5 percent of the taxpayer’s contribution base.
EXAMPLE: if an individual taxpayer with a 2026 contribution base of $100,000 donates $10,000 to charity, the taxpayer can only deduct $9,500 in 2026 (0.5 percent of $100,000 = $500). Amounts disallowed under this rule carry over for up to five taxable years.
Corporate Charitable Deduction
Corporations have a 1% floor on charitable contributions commencing in 2026. Like the rule applicable to individuals, a corporation can only deduct otherwise allowable charitable contributions to the extent such contributions, in the aggregate, exceed one percent of the corporation’s taxable income. See Section 170(b)(2)(A).
Under this rule, a corporation would have to make charitable contributions of at least 1% of its taxable income to receive any charitable deduction. (The median corporate grant maker donates 0.92% of its pre-tax profit and thus would not be entitled to any charitable deduction.)
CAVEAT: corporations also remain subject to the rule that the deduction for contributions cannot exceed 10 percent of taxable income. See Section 170(b)(2)(B).
Section 179 Election to Expense Certain Property
• Prior to 2018, a taxpayer (other than an estate or trust) generally could elect to expense the first $500,000 of so-called “Section 179 property” placed in service during the taxable year, but that amount was reduced by the amount by which all such property placed in service during the year exceeded $2 million adjusted for post-2015 inflation. “Section 179” property, generally, is depreciable tangible personal property (or certain computer software) acquired by purchase for use in the active conduct of a trade or business.
• The 2017 Act increased the annual cap from $500,000 to $1 million and increased the phaseout threshold from $2 million to $2.5 million. Both numbers adjusted for post-2018 inflation.
• The OB3 Act resets both figures, effective for taxable years beginning in 2025. For 2025, the dollar limit was $2.5 million and the phaseout threshold was $4 million. These numbers will still be adjusted inflation going forward. In 2026, for example, the dollar limit is $2,560,000 and the phaseout threshold is $4,090,000. Revenue Procedure 2025-32.
Section 199A Qualified Business Income Deduction
• The 2017 Act introduced Section 199A, which generally gives a qualifying taxpayer a deduction equal to 20 percent of the taxpayer’s “qualified business income” (“QBI”). To qualify for the deduction, one must be a partner in a flow through business entity taxed as a partnership, a shareholder of an S corporation, or a sole proprietor engaged in a trade or business.
• C corporations and their shareholders do not qualify for the deduction, nor do employees.
• “qualified business income” is the net amount of the items of income, gain, loss, and deduction from an eligible trade or business, excluding items of capital gain and loss, as well as certain dividends from REITs, cooperatives, and publiclytraded partnerships.
• Compensation paid to the taxpayer from a business (and guaranteed payments paid to a partner by a partnership) are not qualified business income.
Restrictions on Qualified Business Income Deduction
2 restrictions on the QBI deduction kick in once a taxpayer’s taxable income exceeds a certain threshold. In 2025, that threshold was $197,300 ($394,600 for married couples filing a joint return).
1.If the business is a “specified service business” (one that (i) involves the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, or brokerage services; (ii) has as its principal asset the reputation or skill of one or more of its employees or owners; or (iii) involves the performance of services consisting of investing and investment management, trading, or dealing in securities, partnership interests, or commodities), then the deduction is subject to a phaseout. The deduction is reduced to zero once the taxpayer’s taxable income is more than $50,000 over the threshold (or more than $100,000 over the threshold in the case of a married couple filing jointly).
Restrictions on QBI Deduction
2. The second restriction applies if the amount of the deduction exceeds the “wage-basis limitation.” That limitation is the greater of: (1) 50 percent of the W-2 wages paid by the business, or (2) 25 percent of the W-2 wages paid by the business plus 2.5 percent of the unadjusted basis immediately after acquisition of all depreciable property used in the business still on hand at the close of the taxable year. In fact, once the taxpayer’s taxable income is more $50,000 over the threshold (or more than $100,000 over the threshold in the case of a married couple filing jointly), then the deduction is limited to the wage-basis limitation.
Increased Limits for QBI Deduction
Under Revenue Procedure 2025-32, §4.26, the threshold amount for 2026 is $201,750 ($403,500 for married couples filing jointly), and the complete phaseout of the deduction for specified service businesses (as well as the rule limiting the deduction to the wage-basis limitation) is not triggered until taxable income exceeds $276,750 ($553,500 for married couples filing jointly).
Also, under a new Section 199A(i), a taxpayer will be allowed a minimum QBI deduction of $400 as long as the aggregate QBI from all trades or businesses in which the taxpayer materially participates (as defined in the passive loss rules in Section 469) is at least $1,000. Both the $400 minimum deduction and the $1,000 aggregate threshold amounts are to be adjusted for inflation. This means, for example, that a high-income taxpayer who materially participates in a specified service business can still claim a $400 deduction under Section 199A even though other provisions of the statute would reduce the deduction to zero.
Section 530A
MAGA Accounts
a/k/a Trump Accounts
• “MAGA accounts” (“MAGA” standing for “Money Accounts for Growth and Advancement”) in the original House of Representatives bill, the OB3 Act provides in 2026 for so-called “Trump accounts” in new Section 530A. Trump accounts function as individual retirement accounts (IRAs) created for children under the age of 18. A child can only be the beneficiary of a single Trump account.
• Who is eligible? An “eligible individual,” defined in Section 530A(b)(2) as one who: (1) will not have reached age 18 by the close of the calendar year in which the account is created, and (2) has been issued a social security number. An election to treat an account as a Trump account must be made, either by Treasury or by someone else.
Trump Accounts (continued)
Contributions. Trump accounts can be funded starting July 4, 2026. (That’s not only a federal holiday but also a Saturday, and most custodians that will sponsor Trump accounts will not be open for business until Monday, July 6, 2026.)
Contributions, which are not deductible, can be made in any calendar year before the year in which the beneficiary reaches age 18. For 2026 and 2027, the total amount that can be contributed to a Trump account is, generally, $5,000. Starting in 2028, the contribution limit is adjusted for inflation. Unlike other IRAs, contributions to Trump accounts for any calendar year must be made during the calendar year. In other words, there is no ability to designate a contribution made early in 2027 as a contribution for 2026.
Trump Accounts (continued)
Under new Section 128, up to $2,500 in contributions by an employer to a Trump account for the benefit of an employee or an employee’s dependent are not included in the employee’s gross income. The $2,500 limit adjusts for inflation starting in 2028.
• Special Rule for Babies Born in 2025 – 2028. The OB3 Act also provides for a “contribution pilot program” under which the federal government will indirectly fund the first $1,000 placed into a Trump account for a child born in 2025, 2026, 2027, or 2028 that is a United States citizen and has been assigned a social security number. There is no income criteria. (About 3.6 million babies are born in the U.S. annually.)
Special Rules For Babies born 2025-2028 (continued)
Instead of funding Trump accounts directly, new Section 6434 treats the first $1,000 placed into a Trump account by an individual as a refundable payment of income tax. Therefore, the $1,000 government contribution comes in the form of a $1,000 credit against the federal income tax liability of the contributing individual. The $1,000 indirect contribution does not count against the $5,000 contribution limit in play for 2026 or 2027 (or the inflation-adjusted limits for 2028 and later).
Treatment of Trump Account Contributions For Gift Tax Purposes
Contributions as Taxable Gifts. The OB3 Act does not specify whether gifts to a Trump account qualify for the federal gift tax annual exclusion.
Because the beneficiary cannot withdraw contributions under any circumstance until reaching age 18 (and even then perhaps subject to a 10% penalty), contributions from those other than the child are not gifts of a present interest. Presumably, such contributions do not qualify for the annual exclusion, and any donor to a Trump account will have made a reportable gift and will be required to file a Form 709.
Trump Accounts - Rollovers
The funds from a Trump account can be rolled over into a new Trump account for the same beneficiary, but because a child can only be the beneficiary of a single Trump account, all funds from the old account must roll over into the new account. Qualified rollovers are not treated as contributions and do not give rise to federal income tax consequences.
Trump Accounts: Investments
Until the start of the calendar year in which the beneficiary reaches age 18, Trump account funds can only be held in “eligible investments,” a term defined in Section 530A(b)(3) as, generally, a mutual fund or exchange traded fund that tracks the S&P 500 or any other index comprised of equity investments in “primarily United States companies,” provided the index is not industry- or sector-specific. Also, the fund must not charge annual fees and expenses in excess of 0.1 percent of the fund’s balance.
Trump Accounts: Distributions
Generally, no distributions are allowed until the start of the calendar year in which the beneficiary reaches age 18. When beneficiary attains age of18, a Trump account is treated like an ordinary IRA.
1. Withdrawals will be treated as ordinary income to the beneficiary, and withdrawals taken before the beneficiary reaches age 59 and 1/2 may incur a 10% penalty.
2. Certain early withdrawals, (i.e. - for a first-time home purchase, for qualified educational expenses, or for certain medical expenses) are not subject to the early withdrawal penalty even though they remain taxable as ordinary income.
Trump Accounts: ABLE Account Rollovers
A Trump account can also distribute funds to an ABLE account established for the benefit of the Trump account beneficiary without tax consequence, provided the rollover happens during the calendar year in which the beneficiary reaches age 17.
Death of Trump Account Beneficiary
• Upon death of the beneficiary of a Trump account who dies before reaching age 18, the account ceases to be a Trump account and taxable amounts in the account are included on the beneficiary’s final federal income tax return.
• If someone other than the beneficiary’s estate acquires the beneficiary’s interest in the Trump account upon the beneficiary’s death, the taxable amounts are included in that person’s gross income for the taxable year which includes the beneficiary’s date of death.
Trump Accounts: A move toward privatization of Social Security?
Treasury Secretary Bessent has suggested that Trump accounts could lead to the eventual privatization of Social Security. He stated: “In a way, it is a backdoor for privatizing Social Security. If all of a sudden these accounts grow and you have … hundreds of thousands of dollars for your retirement, then that’s a game changer.”
Alexander Rifaat, Bessent: ‘Trump Accounts” Pathway to Privatizing Social Security, 188 TAX NOTES FEDERAL 835 (Aug. 4, 2025).
Section 1062
Qualified Farmland Property
Under new Section 1062, a taxpayer may elect to pay the “applicable net tax liability” attributable to any gain from the sale or exchange of “qualified farmland property” occurring after July 4, 2025, in four equal annual installments starting with the due date for the tax return for the year in which the sale or exchange occurs. The “applicable net tax liability” is the excess of the taxpayer’s tax liability for the taxable year over what the tax liability would have been without regard to any gain recognized from the sale of exchange of qualified farmland property.
Qualified Farmland Property (continued)
• New Section 1062(d)(2) defines qualified farmland property as:
(1) real property located in the United States,
(2) that the taxpayer uses or leases for farming purposes during substantially all of the 10-year period ending on the date of the sale or exchange, and
(3) which is subject to some legally enforceable restriction that prohibits the use of the property for anything other than a farm for at least ten years after date of the sale or exchange. “Farm” and “farming purposes” have the same meanings here as they do for purposes of the special use valuation rules for federal wealth transfer tax purposes in Section 2032A
Payments are accelerated if the taxpayer dies or makes a late installment payment. In the case of corporations, payments are accelerated if the corporation liquidates or makes a late installment payment.
Section 1202
Qualified Small Business Stock
As originally enacted, Section 1202(a)(1) generally excludes half 50% of the gain from the sale or exchange of qualified small business stock held for more than 5 years. The other 50% of such gain is subject to a preferential tax rate of 28 percent.
In effect, then, the entirety of such gain is taxed at a rate of 14 percent (half of the gain is taxed at 28 percent, half of the gain is not taxed at all).
Qualified Small Business Stock (continued)
OB3 Act modifies the exclusion amount, effective for qualified small business stock acquired on or after July 4, 2025. Under a new phased increase exclusion, a taxpayer need only hold Section 1202 stock for three years in order to qualify for a partial exclusion. The exclusion percentage grows to 75% where the stock is held for four years, and the 100% exclusion applies where the holding period reaches at least five years.
The amount of gain excluded under Section 1202 does not depend on when the taxpayer obtained the qualified small business stock (so long as it was obtained after July 4, 2025); rather it depends on how long the taxpayer holds the qualified small business stock.
Holding Periods For Qualified Small Business Stock
Date of Acquisition
On or before February 17, 2009
if held 5+ years
After February 17, 2009 but before September 28, 2010 75% if held 5+ years
After September 27, 2010 but before July 4, 2025 100% if held 5+ years
On or after July 4, 2025 50% if held 3 years 75% if held 4 years 100% if held 5+ years
Other Limitations: Qualified Small Business Stock
• Only C corporation stock can claim this benefit.
• Qualified small business stock” is any stock in a domestic C corporation originally issued after August 10, 1993, but only if such stock was acquired by the shareholder either as compensation for services provided to the corporation or in exchange for money or other non-stock property, and only if the corporation is a qualified small business.
• Section 1202(d)(1) previously defined a “qualified small business” as a business with aggregate gross assets of $50 million or less at all times after August 10, 1993, and before the date of issuance.
• The OB3 Act adjusts the cap on aggregate gross assets to $75 million or less (adjusted for inflation as of 2027), effective for stock issued after July 4, 2025.
Caps to Qualified Small Business Stock Exclusion
Section 1202(b)(1) traditionally limited the total amount of gain to which the exclusion could apply to $10 million per issuer (or, if more, ten times the total adjusted basis of all qualified small business stock of the corporation sold by the taxpayer during the taxable year). The OB3 Act increases this limit to $15 million per issuer, effective for stock issued by the corporation and acquired by the taxpayer after July 4, 2025. The $15 million limit is to be adjusted for inflation starting in 2027.
Section 2010 Wealth Transfer Tax Exclusion Amount
The 2017 Act doubled the basic exclusion amount under Section 2010(c)(3) from $5 million to $10 million, still with adjustments for inflation after 2011. But the 2017 Act also provided that the basic exclusion amount would revert to $5 million (adjusted for post-2011 inflation) after 2025. The OB3 Act prevented the reduction by resetting the basic exclusion amount to $15 million starting in 2026, with adjustments for inflation after 2026.
• The change of the estate tax basic exclusion amount in Section 2010(c)(3) also automatically adjusted the gift tax exemption amount (Section 2505(a)(1)) and the GST exemption amount (Section 2631(c)).
• The OB3 Act does not change the estate and gift tax rates or make any other transfer tax changes and most importantly, the OB3 Act makes no changes to the application of Section 1014, which provides a fair-market-value-at-date-ofdeath basis for property acquired from a decedent. There was no serious consideration in the legislative negotiations to repealing the estate tax.
Impact of a $15 Million Exclusion on Estate Planning
The permanent extension of the increased $15 million exclusion amount has reduced the perceived pressure on clients to take advantage of the large exclusion amount before it was to be slashed in half. Moreover, a married couple can effectively transfer $30 million to children or other family member without any transfer tax!
With indexing for inflation, the exclusion could easily be over $20 - $30 million in 10 years. While this could be changed by a future Congress, but in all likelihood, only if Democrats were to have control of the administration, the Senate, and the House.
If this was to happen, clients would have plenty of lead time for planning before the exclusion might be decreased. Clients who were not totally comfortable making large gifts are probably the clients most interested in implementing transfer planning with spousal lifetime access trusts (SLATs), so we may see less emphasis on SLATs going forward. However, Clients who have enough wealth that they are comfortable making gifts are best advised to make the gifts currently, so that future appreciation can be removed from the estate.
Spousal Limited Access Trust (SLAT)
• Many clients are not comfortable making large gifts into trusts for children and other descendants because:
• Do not know how much will need for the rest of their life;
• Turn children into “trust babies” and disincentivize children from reaching potential.
• Fear of nature or extent of future changes in future tax legislation.
SLAT(continued)
• What is a SLAT?
• One spouse establishes an irrevocable trust for the benefit of the other spouse and perhaps also other family members.
• The beneficiary spouse continues to have access to the assets in trust for the beneficiary spouse’s benefit and the grantor spouse also has access through the distributions to the beneficiary spouse (as long as they are married!)
• The increased “permanent” $15 million exclusion amount means that transfer taxes (estate, gift and GST taxes) are irrelevant for most clients.
Planning in a World with no Estate Tax!
• Concepts that have been central to the thought processes of estate planning professionals for their entire careers are no longer relevant for most clients –even for “moderately wealthy” clients (with assets of $10 million dollars, or even more).
Planning in a World with no Estate Tax!
Gift Tax Annual Exclusion
EXAMPLE 1: Structuring trusts to qualify for the gift tax annual exclusion may be unnecessary for many clients who will never have any gift or estate tax concerns (though clients need to be advised of the requirement to file gift tax returns reporting any taxable gifts that do not qualify for the annual exclusion).
Planning in a World with no Estate Tax! Estate Tax
Charitable Deduction
EXAMPLE 2: Structuring testamentary charitable trusts to qualify for the estate tax charitable deduction under Section 2055 will no longer be important for many clients.
• Caveat: Still may be important for federal income tax charitable deduction
Planning in a World with no Estate Tax!
Credit Shelter Trusts
EXAMPLE 3: Using credit shelter trusts, can be tax disadvantageous for clients who will pay no estate tax because of the loss of the Section 1014 step up in income tax basis at the surviving spouse’s death.
Estate Planning in Uncertain Times
• Estate Planners need to construct plans that are flexible enough to take into account the possibility that the estate tax exclusion amount could be reduced; but also, to take advantage of the high exemption amounts while they still exist!
Clayton QTIP
A “Clayton QTIP” trust is a trust for which a QTIP election at the death of the first spouse to die can either be made or not made, but if a QTIP election is not made any non-elected property passes to a separate trust (usually a traditional credit shelter-type trust for the benefit of the surviving spouse and descendants)
Why Use A Clayton QTIP #1?
• Income not forced to be distributed to surviving spouse. This allows for income tax planning by sprinkling income and principal among the surviving spouse and other descendants. The surviving spouse is only required to have a mandatory income interest in the property with respect to which a QTIP election is made.
Why Use a Clayton QTIP #2?
• Spousal power of appointment. The surviving spouse may have a limited power of appointment exercisable at death over the assets of the trust usually limited to and among the descendants of the first of the married couple to die. This allows flexibility in dealing with future events.
Why Use a Clayton QTIP #3?
• Postmortem Flexibility. An executor has up to fifteen (15) months (Nine (9) months plus an automatic 6month extension for filing the Form 706) after the decedent’s death to assess the current situation and determine whether or not and to what extent a QTIP election should be made.
Clayton QTIP Ex. 1
• Example 1. An executor may elect portability and may make a QTIP election with respect to 100% of potential QTIP property thereby facilitating use of the predeceased spouse’s GST exemption by means of the “reverse QTIP election” under IRC § 2652(a)(3) plus a full basis step up as to the QTIP property at the death of the surviving spouse.
Anenberg and McDougall Cases (Overview)
• In two recent and unanimous opinions, the Tax Court held that a surviving spouse does not make a gift under IRC § 2519 upon the termination of two marital trusts holding “qualified terminable interest property” (“QTIP”) because the surviving spouse received all of the trust assets upon termination. Estate of Anenberg v. Commissioner, 162 T.C. No. 9 (May 20, 2024); McDougall v. Commissioner, 163 T.C. No. 5 (September 17, 2024).
Anenberg and McDougall (continued)
• The court in both Anenberg and McDougall also held that the surviving spouse’s subsequent installment sale of the assets formerly held in the marital trusts likewise does not trigger a deemed gift under IRC § 2519.
McDougall Gift of Remainder
• In McDougall, the court held that the terminating distribution to the surviving spouse is a gift by the remainder beneficiaries of their vested remainder interests in the trust.
Drafting After Anenberg and McDougall
• In drafting QTIP trusts to leave the flexibility of getting trust assets to the spouse-beneficiary, consider giving a third party a power of appointment to appoint assets to the spouse.
• Reg. §25.2519-1(e) (“[t]he exercise … of a power to appoint [QTIP] to the donee spouse is not treated as a disposition under section 2519, even though the donee spouse subsequently disposes of the appointed property”).
Power of Appointment to
avoid gift tax
• Giving the spouse (or someone else) a power of appointment to appoint the remainder at the spouse’s death provides an argument for minimizing the gift amount by any particular beneficiary resulting from the beneficiary’s consent to an early termination of the QTIP trust.
Disclaimer Trusts
• Predeceased spouse’s residuary estate passes outright to the surviving spouse (i.e. simple will instead of to a QTIP trust where QTIP election could be made).
• If and to the extent the surviving spouse makes a qualified disclaimer any disclaimed property would pass to a credit shelter-type trust for the benefit of the surviving spouse and descendants.
Disclaimer
Trusts –
Disadvantages #1
• the spouse should not have a power of appointment over the assets in the trust to which disclaimed property is added as the disclaimer would not be qualified disclaimer under IRC § 2518.
• qualified disclaimer must be made within nine (9) months of the date of death of the spouse who is the first to die (IRC § 2518(b)).
Disclaimer Trust –
Disadvantages #2
• Comparison to Clayton QTIP. Fifteen (15) month time frame for a QTIP election if a Clayton QTIP is used instead of a Disclaimer Trust so Clayton QTIP would give more flexibility.
Disclaimer
Trusts –
Disadvantages #3
• The surviving spouse may not disclaim any property which the spouse has previously accepted benefits. IRC §2518(b); Treas. Reg. § 25.2518-2(d)(1)
• This is one of the real dangers in using disclaimer trust planning.
Estate tax benefits. If clients leave their estate outright to children by gift or bequest, property may be subjected to federal estate tax upon death of children. Trusts for children could be structured so that:
1. Child receives income.
2. Child receives principal under a HEMS standard.
Consider planning that will not be included in estates of children
3. Child can be the trustee of the trust and can direct investment of trust assets for income or principal growth as your child may decide is in child’s best interest.
4. Child is granted a limited power of appointment so child can at death appoint and direct the trust assets to anyone chosen by child except to that child, the estate of that child, the creditors of that child or the creditors of his or her estate. The class of beneficiaries to whom child can appoint property of the trust can be more limited if desired.
Consider providing for trusts that will not be included in estates of children
• None of the powers listed above either alone or cumulatively will cause the assets of a trust established for the benefit of a child to be included in his or her estate for federal estate tax purposes.
• The limited power of appointment will allow the child to appoint the property outright or in trust to descendants.
What about Step Up in Basis?
• If an irrevocable trust for a beneficiary is not included in the estate of the beneficiary at death, then the assets in the trust will not receive a basis step up for income tax purposes
• If the basic estate tax exemption remains high, the assets of the trust could be included in the estate of the beneficiary without negative estate tax ramifications
Formula General Powers of Appointment to obtain step up in basis
Because of the current high applicable exclusion amounts, clients generally do not anticipate having estate tax issues and tend to believe that their children and grandchildren will also not have transfer tax issues.
Irrevocable trusts should still be considered for clients’ children and more remote descendants for asset protection
Formula General
Power of Appointment (continued)
• Using a formula general power of appointment (“GPOA”), the trust can be designed for a clients’ descendants in a manner that will cause the value of the assets in such trusts to be included in their respective gross estates just up to the point beyond which estate tax would be incurred!
• IRC § 2041(b)(1) defines a GPOA as a power which is exercisable in favor of the decedent, the estate of the decedent, the creditors of the decedent or the creditors of the estate of the decedent.
What is a GPOA?
• Property subject to a GPOA, whether or not exercised, will be deemed to have been acquired from the decedent and will, therefore, qualify for the step-up in basis. Treas. Reg. §§1.1014-2(a)(4), (b)(2).
Structuring Formula GPOA
• Exercise of the GPOA may be subject to a precedent of giving of notice and to take effect only on the expiration of a stated period after its exercise, IRC § 2041(a)(2)
• Structure power so it is exercisable only to the extent holding such power would not, by itself cause imposition of any estate tax.
Cascading Formula GPOA
• Order the GPOA to be applicable:
i. First, to those trust assets having the lowest basis
ii. Cascade to each next lowest basis asset until holding the power would no longer cause any imposition of estate tax
Independent Trustee or Trust Protector grant GPOA
• Trust could provide that an independent trustee or a trust protector may grant a GPOA (perhaps, a formula GPOA) to a beneficiary after considering the income and transfer tax consequences
• Advantage. May provide more flexibility than having the trust instrument itself confer the general power of appointment.
Will Trust Protector or Independent Trustee do it?
• Disadvantage. Will an independent trustee have the willingness and sophistication to grant a general power of appointment to a beneficiary and will the independent trustee given this power even be in existence when needed?
Consider including trusts for children that will not be subject to GST tax
• The estate, gift and GST tax exemption of $15.0 million in 2026 will allow clients to set up trusts for their children that will be GST exempt and can place up to $15.0 million ($30.0 million for married couples) in these trusts which will then be insulated from estate tax and the GST tax.
• This should be considered under the present administration as what a future administration may due is unknown!
Do we make irrevocable trusts grantor trusts for income tax purposes?
A grantor trust is a trust for income tax purposes that the grantor has retained one or more powers under IRC §§ 671 through 679.
Power To Substitute Assets
Under IRC §675(4) and Reg §1.675-1(d), the power to substitute assets of equivalent value by the Trustor vested in a Trustee who is a nonadverse person makes the trust a grantor trust for federal income tax purposes and does not cause the trust to be included in the estate of the grantor under IRC § 2038. Estate of Anders Jordahl, 65 TC 92
Power to borrow Trust funds
The power of a nonadverse party to authorize making a loan to the grantor with adequate interest; but without adequate security will make the trust a grantor trust under IRC § 675(2); but not cause estate tax inclusion upon the death of the grantor.
Why a grantor trust?
When an irrevocable trust is established, someone is going to have to pay the income tax on income received by the trust which is either:
• The Grantor
• The Trust
• Or the beneficiaries
Grantor Trust (Reason #1)
If the Grantor is legally required to pay the income tax, the Grantor is making a gift tax free and gift tax exemption free gift of the amount of the income tax to the beneficiary.
Grantor Trust
Reason #2
Installment sales may be made income tax free between the grantor and a trust that is a grantor trust for income tax purposes. Rev Rul 85-13
Grantor Trust
Reason #3
If the trust is a grantor trust and the terms and provisions of the trust need to be modified, you can distribute the assets or decant into another grantor trust with no income tax consequences.
Designing the Grantor Trust
• Grantor trust status needs to be able to be toggled on or off.
• Toggle off by grantor releasing power that makes the trust a grantor trust.
• Toggle on by giving a trust protector or independent trustee the power to re-grant the power that makes the trust a grantor trust.
• Trustee may be given a power in the discretion of the trustee to reimburse the grantor for income taxes paid.
Dynasty Trusts
• 2016 Amendment to New Mexico Uniform Statutory Rule Against Perpetuities effectively removes restrictions on establishing dynasty trusts in New Mexico.
• This was a dramatic change in trust law in the state of New Mexico, as instead of being able to have a dynasty trust run for perhaps a couple of generations with the general rule of § 45-2-901 NMSA no longer being applicable to “property interests held in trust”, a dynasty trust may now be designed so that the trust corpus may stay in trust forever.
Protection from Divorce
Creditor Protection.
Non-tax advantages of leaving property in trust for children and other family members
Same level of protection whether or not the beneficiary is the trustee or a third party is the trustee.
See 46A-5-504E NMSA
1. Child support and spousal support – 46A-5-503 NMSA.
Exceptions:
2. Judgment creditor providing services for protection of beneficiary’s interest in the trust.
3. A claim of the state of NM or United States to extent a NM statute or federal law so provides.
Disadvantages of gifts in trust
• Disadvantages of leaving child’s share in trust instead of outright:
i. Child must file federal income tax return for trust each year;
ii. Trust must be drafted so that trust does not pay higher income tax, capital gains tax or 3.8% Medicare tax on “net investment income”.
iii. Complexity of bequest in trust vs simplicity of outright distribution.
Recommendation Life Insurance Trust (“ILIT”)
• A client with a taxable estate should not be the owner of any life insurance policy if being owner of the policy will increase the size of the estate of the client by the death benefit paid on the life insurance and result in federal estate tax due.
• life insurance placed in an ILIT should be considered to pay the estate tax liability. Also as a replacement for a SLAT so that the IRS is unable to argue the “reciprocal trust doctrine”.
• This is especially important when so much of the estate is illiquid (i.e. real estate, LLCs and other business entities).
Recommendation
ILIT (continued)
• The primary purpose of a life insurance trust is to:
(i) shelter the proceeds of life insurance upon the life of both spouses from federal estate taxation and
(ii) provide liquidity for the payment of the estate tax and other debts of the estate without increasing the estate tax due because properly structured the life insurance proceeds in the life insurance trust are excluded from the estates of both spouses and if lifetime trusts are employed the trust corpus will also be excluded from the estate of the children
Recommendation:
Establish a Family Foundation.
• A family foundation is a private foundation which is a qualified 501(c)(3) organization which can be the recipient of charitable gifts during lifetime and charitable bequests at death.
• Any portion of a clients estate gifted during life or left to a qualified 501(c)3 family foundation at death would be deductible for federal income, gift and estate tax purposes.
• This not only saves taxes; but it keeps the money in control of the family as family members can serve on the board of directors of the family foundation.
Establish a Donor Advised Fund
• A donor advised fund (DAF) at a community foundation is a qualified 501(c)(3) organization which can be the recipient of charitable gifts during lifetime and charitable bequests at death.
• Any portion of a clients estate gifted during life or left to a qualified 501(c)(3) DAF at death would be deductible for federal income, gift and estate tax purposes.
• This not only saves taxes; but it keeps the money in control of the family as family members can serve as the family advisors on distributions made by the DAF
Conclusion
We live in uncertain times. As estate planning professionals, we need to be aware that the planning we do for clients must stand the test of time.
We must turn our attention from transfer tax planning to income tax, charitable, special needs and asset protection planning; but remain mindful, that the transfer tax could again become an issue for our clients if the administration changes in 2028.
The estate planner’s challenge is that we must prepare estate plans which work today; but that are flexible enough to anticipate changes which may occur in the future.
Elder
& Estate Planning
Sara Traub Founder Traub Law NM, PC
Changes Impacting Elder Law & Estate Planning in 2026
Legislative & Regulatory Landscape for 2026
• One Big Beautiful Bill Act
• Anti -Money Laundering Act Implementation
• ABLE Age Adjustment Act Implementation
• SECURE Act Final Regulations
• Current Tax Cases
• Local – T ax Lightning for Transfers to Trusts
One Big Beautiful Bill
• Changes to Gift and Estate Tax Exemption
– Increase to $15 Million per person in 2026
– Annual inflation adjustment
– “Permanent” (no sunset provision)
• Annual Exclusion stays at $19,000 per do nee
• Continued Portability
One Big Beautiful Bill
• Charitable Giving Changes
– Non -it emizers: $1k Individual/$2k MFJ above -the -line charitable deduction
– Itemizers: Charitable deduction limited to c ontributions in excess of .5% of modified AGI.
– Cash contributions up to 60% of AGI made “ permanent”
– Planning Impact:
• “Bunching” gifts to Donor Advised Funds
• Qualified Charitable Distributions
One Big Beautiful Bill
• Additional $6k standard deduction for seniors (over 65)
– phaseout for income over $75k individual/$150k married filing jo intly
• SALT Deduction increase to $40k+ for next 5 years
• Qualified Small Business Stock rule improvements
– No capital gain on sale after 5 years
– 75% after 4 years
– 50% after 3 years
One Big Beautiful Bill
• Trump Accounts (Section 530A)
– Low-cost, tax deferred account for kids
– Starts July 5, 2026
– Elect on tax return (Form 4547) or through online portal
– Contributions up to $5,000/ year by government, family, employers, others while under age 18
– $1,000 Federal seed contribution for kids born 2025-2028
One Big Beautiful Bill
• Trump Accounts (Section 530A)
– No distributions during growth phase (under age 18)
– Converts to traditional IRA at age 18, but accessible w/out 10% penalty for certain expenditures (education, home purchase, business start up)
– All distributions taxable
One Big Beautiful Bill
• Trump Accounts (continued)
– Compare to 529 Accounts
• Tax-free distribution for qualified expenses
• Higher annual contribution amount ($19,000 in 2026)
• Five-year front-loading option
Anti -Money -Laundering Act
• Reporting Non -Financed Residential Real Estate Transfers
– Effective March 1, 2026
– For tr a nsfers to entities and some trusts.
– To combat money laundering where there is less oversight
– Required reporters: persons involved in real estate closings, incl. a ttorneys
– Report identity of receiving entity, beneficial owners, transferor a nd property transferred
Anti -Money -Laundering
Act
• Exceptions for Certain Transfers:
– Where individual transferor is also a Grantor of the trust
– Resulting from death
– Supervised by Court
– Incident to divorce
– For no consideration
– Transfers to qualified intermediary in 1031 exchange
• No exception for transfers to LLC s
• See fincen.gov/ rre
ABLE Age Adjustment Act
• Effective Jan 1, 2026, disability onset age increased from 26 to 46
• Expands eligibility to adults with later onset disabilities (e.g., MS, PTSD, TBI)
• Contribution limit increases to $20k/year from any source
• Employment earnings contribution limit $15,650/year
• ABLE to Work, Federal Saver’s Tax Credit and 529 rollover to ABLE made “permanent”
ABLE Age Adjustment Act
• Continued $100k limit for SSI eligibility and payback provisions
• Tax-free investment growth
• Distributions for qualified disability expenses not considered income
• Planning impact:
– Expanded eligibility
– Coordinate ABLE accounts with Special Needs Trusts for maximum benefit
SECURE Act Final Regulations
• Catch Up Contributions
– High -I ncome Earners “ Rothification ”
• >$150k of FICA wages in 2025
• Catch up contributions on after -t ax basis only
– Super Catch Up Contributions
• 150% of regular catch up amount allowed for participants a ge 60 -63
• Regular catch up limit $8,000
• Max 401(k) salary deferral + max super catch up = $35,750
Current Tax Cases
• Estate of Rowland v. Commissioner - T .C. Memo 2025 -76
– Portability disallowed because of incomplete 706 of
f irst deceased spouse
– $3M estate of first deceased spouse, left 20% to c harity, 25% to surviving spouse, 55% to others
– No asset values provided to determine estate e xemption used for transfers to others and remaining DSUE
– Planning Impact:
• Substantial compliance = timely filed, properly prepared
• Appraisals and DOD values support Portability election and basis adjustment
Current Tax Cases
• Belmont Investment LLC v. Commissioner – Tax Court Docket
No. 14039 -25
– Testing Rev. Rul. 2023 -2 that no basis adjustment allowed for assets in Grantor Trusts not included in Decedent’s estate
– Claiming basis adjustment and 754 election for LLC i nterest held in irrevocable Grantor trust outside Grantor’s estate at the time of Grantors death – Grantor Trust status at death does not subject it to basis a djustment at death
Current Tax Cases
• Elcan v. Commissioner – T ax Court Docket
No. 3405 -25
– GRAT returning Grantor’s swap notes to satisfy annuity payment to Grantor
– Initial GRAT contribution of LLC and partnership i nterests
– Entity interests later removed using Grantor’s swap power in exchange for notes
– Notes later distributed to Grantor to fulfill annuity payment
– Can’t pay annuity amount with a note from GRAT
– BUT note from Grantor is an asset of the GRAT
Local: Tax Lightning for Transfers to Trusts
• Transfers to Revocable Trusts Being Treated as C hange of Ownership
– Statutory 3% cap on annual valuation increase until c hange of ownership
– Statutory exceptions include transfer to revocable t rust where transferor, spouse OR child is a beneficiary (NMSA 7 -36 -21.2 E(7))
Local: Tax Lightning for Transfers to Trusts
• What is the disconnect?
– Exception requirements not captured on deeds
– No established method for confirming that r equirements are met
– Misinterpretation of statute
– Lack of common sense evaluation
Local: Tax Lightning for Transfers to Trusts
• Planning Impact:
– Undermines privacy purpose of trusts
– Arbitrary application
– Discrimination based on misinterpretation
– Advise clients to review tax assessment and p rotest overvaluations during the protest period
Thank you!
Sara R. Traub, CPA, JD
SESSION
12:25pm
Founder
The Law Office of Cristy J. Carbón-Gaul
Day 1: MARCH 4 2026
Cristy Carbón-Gaul
Representing Marginalized Communities
Cristy J. Carbón-Gaul
Agenda
Disability-Mental Health, Developmental Disability, and Dementia
Representing People with Modest Means
Representing the LGBTQ+ Community
Disability- Mental Health, Developmental Disability, and Dementia
How to implement protections
Least Restrictive Options Powers of Attorney Autonomy
Least Restrictive Means
First Question- no matter age
• Does your client have Powers of Attorney in Place?
• If you are representing people with youg adult children, do they have Powers of Attorney… HIPAA is an issue.
For Estate Planning- do you know what your assets are? Who are your “natural bounty?”
TBI
Developmental Disability
Capacity
Incapacity due to mental health or dementia
An analysis needs to be done of their decision-making capabilities
This document handles your financial matters.
GENERAL DURABLE POWER OF ATTORNEY
When does it become effective
Needs to be comprehensive
Needs to be notarized
Successor agents
Without it, conservatorship
GENERAL DURABLE HEALTH CARE POWER OF ATTORNEY
You appoint someone to make health care decisions for you when you are unable Includes the “living will”
When does
it become effective
Without it, guardianship
Right to Die
Guardianship
- Over the person
- End of life decisions
- Housing
- Caregivers
- Medical Staff
- Medical Treatments
• Over the finances
Conservatorship
Costs of Proceedings Guardian ad Litem Visitor
Petitioner Neuropsych
Petitioning
Lawyer
Investigating Allegations Doctor’s report
Third Party v. Family Appointment Temporary Permanent
Guardian ad Litem Court Visitor
• What is their role?
Qualified Healthcare Provider v. Neuropsych exam/primary care physician
Filing Emergency (Temporary) v. Permanent
• When do you rush to Court?
• No documents
• Theft
• Medical emergency and conflict
• Agent unavailable
• Financial Abuse
• Safety
• Housing
Corporate Fiduciary versus Family Member
Case managers with guardian or agent Conservator and trustee
How guardian and conservator work together
Family conflict
Providing Services for Persons of Modest Means
Powers of Attorney are So important to avoid guardianship and conservatorship Does the client support parents or grandchildren?
Confirming Beneficiary Designations are up to date Administrative Bank Account
Panic Estate Planning Putting Children on Accounts and Deeds
One kid on beneficiary desigantions Minors on accounts
When Death Certificates are Slow
Access to Liquidity
Prepayment for Burial/Cremation
Beneficiary Designations
1. Coordinate with Estate Plan/ making educated decisions
2. Naming Minors
Understanding your Financial Situation when Spouse/Partner dies
PENSIONS-ARE THEY TWO LIFE ANNUITIES?
Social Security
Understanding Ramifications of Remarriage Pensions Social Security
Pre-Nuptial Agreements
Issue Spotting When Representing the LGBTQ+ Community
• If a couple, are they married or domestic partners?
• How long have they been married? (separate versus community property)
• Do they have children?
• How has their family reacted to them coming out?
45-2-120. Child conceived by assisted reproduction other than child born to gestational carrier.
• 45-2-117. No distinction based on marital status.
• Except as otherwise provided in Section 45-2-114, 45-2-119, 45-2120 or 45-2-121 NMSA 1978, a parent-child relationship exists between a child and the child's genetic parents, regardless of the parents' marital status.
Domestic Partners
• Gay or Straight- need documents
• Estate Planning is essential
Cons of Domestic Partnership
Cannot file joint return
Cannot receive social security from domestic partner (although joint children can if minors)
Complications of asset distribution at death if no estate plan
Registration of Domestic Partners – Recognition by the State
Why Register
It is for Benefits
If you move from that State- do you cancel the registration
What is the impact on estate planning and probate
Common Law Marriage
New Mexico does not have Common Law Marriage Colorado, Iowa, Kansas, Montana, New Hampshire, Oklahoma, Rhode Island, South Carolina, Texas, Utah, and DC
New Mexico will recognize a common law marriage when transferred from another state.
Benefits of a Surviving Spouse
Some benefits are lost if a surviving spouse remarries
Military benefits
Pensions
Continued medical insurance
As an estate planner, making sure the couple knows how these assets work so couple understands their financial position upon the death of one of them
Domestic Partnership Agreements
House ownership Household expenses
Break-Up
Death
Tangible Personal Property
Social Security of Deceased Spouse (12 months)
Health Insurance
Contemplation of Marriage
Separate versus Community Propertyremember how this transfers if no will
PreNuptial Agreement
Still Need an Estate Plan
Cremation
• Domestic Partners can authorize cremation
24-12A-2. No written instructions; priority of others to decide disposition.
• A. Except as provided in Subsection B of this section, if a decedent has left no written instructions regarding the disposition of the decedent's remains, the following persons in the order listed shall determine the means of disposition, not to be limited to cremation, of the remains of the decedent:
• (1) the surviving spouse;
• (2) a majority of the surviving adult children of the decedent;
• (3) the surviving parents of the decedent;
• (4) a majority of the surviving siblings of the decedent;
• (5) an adult who has exhibited special care and concern for the decedent, who is aware of the decedent's views and desires regarding the disposition of the decedent's body and who is willing and able to make a decision about the disposition of the decedent's body; or
• (6) the adult person of the next degree of kinship in the order named by New Mexico law to inherit the estate of the decedent.
• B. If a decedent left no written instructions regarding the disposition of the decedent's remains, died while serving in any branch of the United States armed forces, the United States reserve forces or the national guard and completed a United States department of defense record of emergency data form or its successor form, the person authorized by the decedent to determine the means of disposition on a United States department of defense record of emergency data form shall determine the means of disposition, not to be limited to cremation.
Gender versus Sexual Orientation
• Gender identity is each person's internal and individual experience of gender. It is a person's sense of being a woman, a man, both, neither, or anywhere along the gender spectrum. A person's gender identity may be the same as or different from their birth-assigned sex.
• Sexual orientation is about who you’re attracted to and who you feel drawn to romantically, emotionally, and sexually. It’s different than gender identity. Gender identity isn’t about who you’re attracted to, but about who you ARE — male, female, genderqueer, etc.
Terms
Gay Lesbian
Non-Binary
Gender identity refers to how someone conceptualizes their gender. This identity is distinguishable from a person’s sexual orientation and sex assigned at birth.
Someone who is non-binary does not identify as exclusively male or female. They may identify as both, neither, or some combination of the two. For example, someone who identifies as non-binary may feel more masculine on some days and more feminine on other days. Their gender expression, the way they present themselves (including clothing choices), may fluctuate –or they may choose to dress more androgynously.
Transgender
A transgender person (often abbreviated to trans person) is someone whose gender identity or gender expression does not correspond with their sex assigned at birth.
Cisgender
• Cis, short for cisgender (pronounced sis-gender, or just sis), is a term that means whatever gender you are now is the same as what was presumed for you at birth. This simply means that when a parent or doctor called you a boy or a girl when you were born, they got it right.
Asexual
• Asexuality is the lack of sexual attraction to others, or low or absent interest in or desire for sexual activity. It may be considered a sexual orientation or the lack thereof.
Dead Name
• the birth name of a transgender person who has changed their name as part of their gender transition.
• If there is not a legal name change, you need to use the birth name in document
Court Proceeding to legally change name
Name Changes
Law has change recently regarding publication of a name change – for safety of Petitioner (i.e. domestic violence and Trans Individuals)
Legal name change needed to use new name in legal documents like estate planning documents, passports, driver’s license
Pronouns
• He,Him, His
• She, Her, Hers
• They, Them, Theirs
• IT can be offensive or harassing to guess at someone’s pronouns and refer to them using those pronouns if that is not how that person wants to be known. Or, worse, actively choosing to ignore the pronouns someone has stated that they go by could imply the oppressive notion that intersex, transgender, nonbinary, and gender nonconforming people do not or should not exist.
Professional Ethics
• 16-804. Misconduct.
• It is professional misconduct for a lawyer to:
• A. violate or attempt to violate the Rules of Professional Conduct, knowingly assist or induce another to do so or do so through the acts of another;
• B. commit a criminal act that reflects adversely on the lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects;
• C. engage in conduct involving dishonesty, fraud, deceit or misrepresentation;
• D. engage in conduct that is prejudicial to the administration of justice;
• E. state or imply an ability to influence improperly a government agency or official or to achieve results by means that violate the Rules of Professional Conduct or other law; or
• F. knowingly assist a judge or judicial officer in conduct that is a violation of applicable rules of judicial conduct or other law.
• G. engage in conduct that the lawyer knows or reasonably should know is harassment or discrimination on the basis of race, sex, religion, national origin, ethnicity, disability, age, sexual orientation, gender identity, or marital status in conduct related to the practice of law. This paragraph does not limit the ability of a lawyer to accept, decline, or withdraw from a representation in accordance with Rule 16-116 NMRA. This paragraph does not preclude legitimate advice or advocacy consistent with these rules.
• [As amended by Supreme Court Order No. 08-8300-029, effective November 3, 2008; as amended by Supreme Court Order No. 19-8300-012, effective December 1, 2019.]
Cristy J. Carbón-Gaul
The Law Office of Cristy J. Carbón-Gaul Pronouns: she, her, hers https://www.mypronouns.org/what-and-why
Maiiling address: 10515 4th St., NW
Albuquerque, New Mexico 87114
Hand deliveries/ Client Meetings: 10143 4th St., NW
Albuquerque, New Mexico 87114
505.899.5696
cristy@carbon-gaul.com carbon-gaul.com
1:30pm
Brooke Nutting CPA Death Doula Professionals
Day 1: MARCH 4 2026
Medical Aid In Dying (MAID) in New Mexico:
Implications for Estate and Financial Planning
Presented by: Brooke Nutting Death Doula, End of Life Guide, CPA
OBJECTIVES
Understand the basic framework of New Mexico’s Medical Aid In Dying Act
Know who qualifies under NM Law
Recognize how MAID may surface in planning conversations
Identify estate and financial planning considerations
DEFINING MAID
Elizabeth Whitefield End Options Act ~ Enacted 2021
“ The medical practice wherein a health care provider prescribes medication to a qualified individual who may selfadminister that medication to bring about a peaceful death.”
24 -7C-2 (E)
DEFINING MAID
Elizabeth Whitefield End - of - Life
Medical Aid In Dying is NOT “suicide, assisted suicide, euthanasia, mercy killing, homicide or adult abuse under the law.”
Options Act ~ Enacted 2021 24 -7C-8
WHO IS ELIGIBLE?
Under NM Law a patient must:
• Be 18 or older
• Be a New Mexico resident
• Be diagnosed with a terminal illness (6 months or less)
• Have decision-making capacity
• Be able to self-administer the medications
REQUIRED SAFEGUARDS
• Voluntarily made the request for medical aid in dying
• Make written request for medication to end my life in a peaceful manner - Signed and witnessed
• 48 hour waiting period - Can be waived
• Two medical professionals sign off
MAIDPending
KEY DISTINCTIONS
• It is voluntary
• The patient must self - a dminister
• It applies only to terminal illness
• It is not euthanasia
WHY THIS MATTERS
Clients may raise MAID when:
• Updating estate plans after a diagnosis
• Revising advance directives
• Discussing incapacity planning
• Making significant lifetime transfers
• Structuring charitable gifts
WHY THIS MATTERS
Timing Considerations
MAID may create:
• Compressed timelines
• Accelerated decision-making
• Asset retitling urgency
• Gifting strategy shifts
• Trust funding review
WHY THIS MATTERS
Timing Considerations
Planning professionals may see:
• Increased beneficiary coordination
• Liquidity preparation
• Review of digital assets
• Final expense clarity
WHY THIS MATTERS
Advance Directive Alignment
Important distinctions:
• MAID is separate from advance directives
• It cannot be requested via POA
• It cannot be authorized by an agent
• It requires capacity
WHY THIS MATTERS
Advance Directive Alignment
Estate professionals should ensure documents
• Reflect current wishes
• Avoid conflicting language
• Clarify MAID decisions can’t be delegated
SCOPE OF PRACTICE
What we DON’T do:
• Determine eligibility
• Coordinate medical providers
• Advise on medication protocol
What we CAN do:
• Acknowledge the question
• Refer to qualified professionals
• Focus on planning implications
THIS TOPIC CAN BE
• Emotionally charged
• Religiously sensitive
• Politically sensitive
• Family-dividing
AND IT CAN BE BEAUTIFUL
DAY OF INGESTION
• Anti-anxiety and anti-nausea medications
• Lockbox
• Mixture of 5 medications in 2 - 4 oz of juice
• Drink through a straw within 2 minutes
• Sorbet is given before, during, and after drinking to cool the mouth and throat
KEY TAKEAWAYS
• MAID is legal in NM
• Strict safeguards
• Requires capacity
• Accelerate timelines
• Cannot delegate authority
• Self administration
Gerard “Roddy” Thomson Licensed Agent New York Life Insurance
Disclaimer
This seminar is for informational purposes only. This tax-related discussion reflects an understanding of generally applicable rules and was prepared to assist in the promotion or marketing of the transactions or matters addressed. It is not intended (and cannot be used by any taxpayer) for the purpose of avoiding any IRS penalties that may be imposed upon the taxpayer.
New York Life Insurance Company, its agents and employees may not provide legal, tax or accounting advice. Individuals should consult their own professional advisors before implementing any planning strategies.
© 2016 New York Life Insurance Company. All rights reserved.
10 Advantages of Donating Life Insurance
1. Your Gift May Be Maximized
• Continue your current outright cash gifts
– These are important for operations on a day-to-day basis
• Life insurance offers a significant gift
– This is a unique opportunity for leverage
• Life insurance can help create a major gift
– Turn a modest gift into a significant endowment
10 Advantages of Donating Life Insurance
2. Your Legacy Lives On
− You get tremendous satisfaction helping worthwhile causes
− Life insurance can provide much for the charity:
• Endow a chair
• Create a scholarship fund for a school
• Continue programs which depend on your bequest for support
• Make a difference in the lives of others
10 Advantages of Donating Life Insurance
3. Your Personal Assets May Remain Intact
− There is typically a modest invasion of capital when you give a gift of life insurance
− These gifts can be made with little or no impact on family finances or inheritances
− You will need income or other resources to continue paying the life insurance premiums, which should be deductible to you
10 Advantages of Donating Life Insurance
4. The Charity Receives Your Gift Promptly
− Your gift of life insurance is not subject to probate delays or estate settlement costs
− Life insurance proceeds are often not subject to the claims of creditors.*
* Laws vary from state to state. Individuals should consult with their own tax and legal advisors regarding their particular situation.
10 Advantages of Donating Life Insurance
5. Premium Payments May Be Income Tax Deductible
− Annual premiums paid for life insurance owned by a qualifying charity is income tax deductible to the extent allowed by law
− This can further reduce the cost of your life insurance gift
− Deductibility is limited to qualified charities
10 Advantages of Donating Life Insurance
6. Your Qualified Charity Receives Your Gift Free of Taxes
− Income tax free death benefit paid to the charity
− Life insurance proceeds paid to a qualified charity generally will not be includible in your taxable estate.
• If the charity is the owner of the policy; or,
• When you own the policy and name the charity the beneficiary
10 Advantages of Donating Life Insurance
7. The Charity May Be Able To Access Cash While You’re Alive
− The policy builds cash value during your life
− Cash values can be borrowed to help the charity meet expenses or emergencies*
* Policy loans accrue interest at the current rate and any such loans or withdrawals will decrease the cash value and death benefit
10 Advantages of Donating Life Insurance
8. Your Privacy Can Be Protected
− Your gift can be confidential
− You can choose publicity or privacy
10 Advantages of Donating Life Insurance
9. Simple To Arrange
− Your New York Life Agent can help
− Your agent can show you several ways to give the gift of life insurance
− You will know that your gift will be honored, as long as the premiums are paid
10 Advantages of Donating Life Insurance
10. Your Life Insurance Gift Is Backed By New York Life
− Since 1845 New York Life has served the needs of individuals, families, businesses and charities
− As one of the nation’s top insurance and financial institutions, New York Life has always honored its commitment to policy owners
10 Advantages of Donating Life Insurance
3:45pm
Denise Nava Wyrick VP of
OBBBA
Planning
Brad Justice Wealth Management Advisor
OBBBA Financial Planning Nuggets
March 5, 2026
Brad Justice, CFP®, MSFS, CLU®, ChFC®, RICP®, WMCP® Wealth Management Advisor
This presentation is not intended as legal or tax advice. Northwestern Mutual and its Financial Representatives do not give legal or tax advice. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor. Tax and other planning developments after the original date of publication may affect these discussions.
• One Big Beautiful Bill Act Planning Opportunities
• Current Topics
• Market Commentary
OBBBA: Rates and Standard Deduction
• Individual income tax rates remain unchanged
• Standard deduction permanently increased
• 2025
– $15,750 single or married filing separately
– $23,625 head of household
– $31,500 married and filing jointly
• 2026
– $16,100 single or married filing separately
– $24,150 head of household
– $32,200 married and filing jointly
OBBBA: New Senior Deduction (2025 to 2028)
• Taxpayers who are at least 65 years old
• $6,000 per taxpayer
• Phases out
• $75,000 to $175,000 (single)
• $150,000 to $250,000 (joint)
• Available to itemizing and non-itemizing taxpayers
Planning Opportunity: Roth Conversions
• Strategic Roth conversions between the ages of retirement and age 73 or 75
• Take advantage of historically “low” tax rates
• Temporary down markets are “super Roth conversion” moments
• Senior deduction could allow for additional conversions
• Roth assets are some of the best to inherit
• Consider the investment allocation on Roth accounts as they are often one of the last assets accessed in retirement
OBBBA: Charitable Contributions (2026)
• Taxpayers taking the standard deduction eligible to deduct charitable contributions
• $1,000 for single filers
• $2,000 for married filing jointly
• Contributions must be made in cash to qualify for the deduction
• Donor-advised funds are not eligible
• No sunset provision
OBBBA: Charitable Contributions (2026)
• Newy introduced charitable deduction floor for itemizers
• Deductions only allowed to the extent the contributions exceed 0.5% of AGI floor
• Example:
– $200,000 of AGI
– $4,000 charitable contribution
– 0.5% AGI floor is $1,000
– $3,000 of the charitable contribution is deductible for the itemizer
Charitable Contributions (QCDs)
• Taxpayers over 70 and ½ are still eligible for Qualified Charitable Distributions
• Maximum (per taxpayer) 2025: $108,000
• Maximum (per taxpayer) 2026: $111,000
• Generally comes from an IRA
• Cannot come from a 401(k), 403(b) or 457
• Can come from a SIMPLE or SEP IRA if no longer contributing
Charitable Contributions (QCDs)
• In general, QCD is the starting point for charitably inclined taxpayers who are eligible
• Excellent option for inherited IRAs
• Beneficiary/owner must be over 70½ to make a QCD from an Inherited IRA
Charitable Contributions (QCDs)
• 1099 update! (2025 and beyond)
– Code Y for Box 7 for Form 1099-R identifies QCDs
– May be on one 1099-R or a separate form
– Code Y is optional for 2025 and might not be used by a financial institution
– In the case where a financial institution does not report QCD on a 1099, it’s up to the taxpayer to report all IRA distributions on line 4a of their 1040, but then subtract the QCD on line 4b, and write QCD next to line 4b. See instructions to 1040 here: https://www.irs.gov/pub/irspdf/i1040gi.pdf
OBBBA: 529 Plans
• Increased flexibility for eligible 529 plan distributions
• K-12 expenses increased to $20,000 per year per student (effective 2026 and beyond)
• Expenses for curriculum materials, textbooks, instructional materials, online education materials
• Fees for standardized tests, AP exams, and college admission exams
• Dual enrollment fees for postsecondary programs
• Educational therapy costs for students with disabilities, including occupational, behavioral, physical, and speech-language therapies
OBBBA: Radiation Exposure Compensation Act Extended
• Extended RECA to December 31, 2027
• “Downwinders”
• $100k tax free payment
• Live New Mexico for at least one year, September 24, 1944 to November 6, 1962
• Heirs can claim
• Qualifying cancers:
– Leukemia (other than chronic lymphocytic leukemia), multiple myeloma, lymphomas (other than Hodgkin’s disease), and primary cancers of the: thyroid, male or female breast, esophagus, stomach, pharynx, small intestine, pancreas, bile ducts, gall bladder, salivary gland, urinary bladder, brain, colon, ovary, liver (except if cirrhosis or Hepatitis B is indicated,) or lung.
OBBBA: Other
• QBI continued
• Lifetime gift and estate tax exemption permanently increased
• Trump accounts
OBBBA & Other Provisions
• OBBBA:
• New tax deduction for those earning tips and overtime wages
• New auto loan interest deduction created
• Mortgage insurance premiums deductible starting in 2026
• Child tax credit amount increased permanently
• Dependent care FSA contribution limits increased
• New student loan borrowing limits set and repayment plans introduced
• Consolidated Appropriations Act (December 2022)
• ABLE account increased accessibility age to age 46
Current Topics
• Life insurance audit
• +/- 25% inflation since 2020
• Changes in catch-up provisions:
• Regular catch-up provision: $8,000
• “Super” catch-up provision for individuals ages 60-63: $11,250
• Mandatory Roth for catch-up contributions for high earners effective January 1, 2026
– Applies only to 401(k), 403(b) and governmental 457(b) plans
– Individuals with wages over $150,000 in 2026 with current employer
– Applies to all catch-up contributions (regular or “super”)
– If the plan does not have a Roth option, high earners will not be able to contribute catch-up
Current Topics
• IRA income annuities can be aggregated to satisfy RMDs
• Market commentary
• Interest rates
• AI
• Broadening of market growth
• Tariff
Brad Yablonsky
Financial Advisor RBC Wealth Management
SocialSecurity–Thechoiceofalifetime
UnderstandingwhenandhowtofileforSocialSecuritybenefits
Today’spresentation
1.WillSocialSecuritybethereforme?
2.HowmuchcanIexpecttoreceive?
3.WhenshouldIapplyforSocialSecurity?
4.HowcanImaximizemybenefits?
5.WillSocialSecuritybeenoughtoliveon inretirement?
UnderstandingtheValueofSocialSecurity
SocialSecurityoffersincomeyoucan’toutlive
Ifyourmonthlybenefitis$2,000todayandyoulive: inlifetime benefits
$276,032 you'llreceivea totalof 10moreyears $602,780 20moreyears
$1,001,096 30moreyears
Assumes2%annualcost-of-livingadjustments
SocialSecurityoffersannualinflationadjustments
Ifyourmonthlybenefitis$2,000todayandannualcostof-livingadjustmentsare2%:
Yourmonthlybenefit willbe In10years
$2,438
$2,972 In20years
$3,623 In30years
Assumes2%annualcost-of-livingadjustments
WillSocialSecuritybethereforyou?
1:Source:2025OASDITrusteesReport Fullbenefitspayabletoatleast20341
Withnolegislativechanges,SocialSecurity wouldpay81%ofbenefitsafterward1
Restoringsolvencytothesystem…
Reformproposalsbeingstudied
•IncreasemaximumearningssubjecttoSocial Securitytax (currently$184,500in2026)
•Raisethenormalretirementage (currently66forindividualsbornbetween1943and1954; 67forthosebornin1960orlater)
•Lowerbenefitsforfutureretirees (escalatebenefitsbasedonincreasesinconsumerpricesrather thanwages)
•Reducecost-of-livingadjustments(COLAs)forall retirees
FullRetirementAge(FRA)
EARLY FRA DELAY
Thebottomlineforbabyboomers
HowSocialSecuritybenefitsarecalculated
•Atage62,eachyear’searningsaretalliedupand indexedforinflation
•Highest35yearsofearningsareaveraged(AIME)
•AIMEisdividedbythree“bendpoints”todetermine yourprimaryinsuranceamount(PIA).Thisisthe amountyou'llreceiveatfullretirementage.
•Benefitisincreasedeachyearbycost-of-living adjustments(COLAs)
Exampleofbenefitformula
•BabyBoomerbornin1964-turns62in2026
•MaximumSocialSecurityearnings everyyear
•AIME=$14,358.10
•PIAformula:
WhatifYouApplyAfterFRA?
Youwillearn8%annualdelayedcredits
Benefitwillbea
%ofPIAifFRA =66 Applyatage
Benefitwillbea
%ofPIAifFRA =67
Spousalfilingrules
•John'sPIA$2,000
Benefits
•Jane'sPIA$800
•IfJaneappliesatFRA,herbenefitwillbe$1,000 (50%ofJohn'sPIA)
Spousalbenefit=1/2theprimaryworker'sPIAif startedatfullretirementage
Spousalfilingrules
Eligibility
•Eligibleat62
•Marriedforatleast
oneyear
•Onespousemust filefortheotherto claimbenefits
Benefits
•Upto50%of spouse’sPIA
•No"Delayed Credits"onspousal benefitsafterFRA
Fordivorcedspouses
Eligibility Benefits
•Marriagelasted10 yearsormore
•Personreceiving divorced-spouse benefitiscurrently unmarried
•Ex-spouseisat least62
•Spousaland survivorbenefits
•Noimpacton ex-spouse’sbenefit
•Morethanoneex
canclaimonthe sameworkers record
Forsurvivingspouses
Example
•JohnandJanearemarried
•John'smonthlybenefitis$1,200.Jane'smonthly benefitis$2,000.
•Janedies
•JohnnotifiesSocialSecurityandhis$1,200benefit isreplacedbyJane's$2,000survivorbenefit
Whenonespousedies,thesurvivingspousereceives thegreaterofthetwobenefits
Forsurvivingspouses
Eligibility Benefits
•Marriedforatleast 9months
•Benefitscanbe takenasearlyas age60
•Survivorbenefitnot availableif widow(er)remarries beforeage60
•Spouse’sPIAincluding delayedretirement creditsearned
•Survivorbenefitscan bereceived independentof individualbenefits
Factorstoconsiderwhendecidingwhentoapply
•Healthstatus
•Lifeexpectancy
•Needforincome
•Whetherornotyouplantowork
•Survivorneeds
Medicarewillshrinkyourcheck
IfyouarereceivingSocialSecurityandare65or olderandenrolledinMedicare,yourPartB premiumswillbedeductedfromyourcheck.
Benefits
•In2026,PartBpremium=$202.90/month**
Whydelaybenefits?
Biggercheckstostart
WhentoapplyforSocialSecurity Keypointstoremember
•Ifyouapplyearly,yourbenefitstartslowerandstays lowerforlife.
•COLAsmagnifytheimpactofearlyordelayedclaiming. Thelongeryoulive,themorebeneficialitistodelay benefits.
•Decisionimpactssurvivorbenefitsaswell:delaying benefitsmaygivesurvivingspousemoreincome.
HowcanImaximizemybenefits?
at:www.socialsecurity.gov/mystatement –Isitaccurate? –Anymissingyears? –Canyouimproveitbyworkinglonger?
Strategy#2formaximizingyourbenefits
Annualearningstest
•IfyouapplyforSocialSecuritybeforefullretirement ageandyouwork:
•$1inbenefitswillbewithheldforevery$2youearn over$24,480in2026
•Benefitwillbeadjustedatfullretirementage
•Don’tletannualearningstestdiscourageyoufrom working
•Toavoidtheearningstest,waituntilfullretirement ageorlatertoapplyforbenefits
Minimizetaxationofbenefits
TaxationofSocialSecuritybenefits
Single,headofhousehold,qualifying widow(er),marriedfilingseparately& livingapartfromspouse
withspouse
MinimizeTaxesonSocialSecurityBenefits
•Reduceotherincomewithtax-advantaged investments(butnotmunicipalbonds!)
•AnticipateIRARMDs,whichmayputyouina highertaxbracket;considerdrawingdownIRAs beforeage73(formerlyage70½…formerlyage 72…andmovingtoage75)
•ConverttraditionalIRAtoRoth
•DelaySocialSecurity:reducesnumberofyears benefitsaresubjecttotax
•Reduceexpenses:paydowndebt,adoptsimpler lifestyle
•Continuetomanagetaxesthroughoutretirement
ConsiderSocialSecurityinthecontextof:
•Pensions
•IRAsand401(k)s
•Requiredminimumdistributionsatage73 (Formerlyage70-1/2…formerlyage72…moving toage75)
•Investmentportfolio
•Work
Importantthingstokeepinmind
•Notadeposit•NotFDICorNCUSIFinsured•Notguaranteedbytheinstitution• Notinsuredbyanyfederalgovernmentagency•Maylosevalue
Thisisforinformationalpurposesonlyandshouldnotbeconstruedasinvestment,tax,orlegal adviceorasolicitationtobuyorsellanyspecificsecuritiesproduct.Youshouldworkcloselywith yourfinancialprofessionaltodevelopaplanthatincorporatesyourinvestmentobjectives,goals,risk toleranceandtimehorizonsbasedonyourspecificsituation.Theinformationprovidedisbasedon currentlawswhicharesubjecttochangeatanytime.
SecuritiesofferedthroughSIIInvestmentsInc.(SII),memberFINRA/SIPC.SIIandNationwideare separateandnon-affiliatedcompanies.Investorsshouldconsidertheinvestmentobjectives,risks, charges,andexpensesoftheinvestmentcompanycarefullybeforeinvesting.This,aswellasother importantinformation,iscontainedintheprospectus.Pleasereaditcarefullybeforeinvestingor sendingmoney.Formoreinformation,ortorequestaprospectus,contactyourinvestment representative.
Nationwide,NationwideisonyoursideandNationwideRetirementInstituteareservicemarksof NationwideMutualInsuranceCompany.©2014Nationwide NFM-11701M3(12/14)
Day 2: MARCH 4 2026
SESSION 3
12:25pm
Planning for Individuals with Disabilities Panel
John Attwood, NCG
Sr. Vice President – Trust Officer/Business Development Cardinal Trust
Feliz Martone
Founding Attorney Legal Legacy Trusts & Estates PC
Bridget Mullins Partner
Horton Mullins, PC
Jessica Streeter
Attorney
Streeter Law Firm
Exit Planning & Estate Planning
Today's Agenda
What Is Exit Planning?
What Is Exit Planning?
"Exit planning is the process of creating a strategy that prepares a business owner to transition ownership while maximizing the value of their business and achieving personal financial and life goals."
Business
Optimization
Increase value, reduce risk, build systems
Personal
Financial Planning
Ensure post-exit financial security
Personal Life Goals
Define what life looks like after exit
Why This Matters to Your Clients
$10T+ in business assets expected to change hands by 2030 78% of owner net worth is typically tied to the business 20-30% fewer businesses sell without exit planning
Source: Exit Planning Institute | Business Enterprise Institute
Only 30% of owners have any written exit plan
Why This Matters to Your Clients
(i.e. a plan that has been shared in case of death, divorce, disability, etc.) 24%
Increase in contingency planning from 2013 to 2023
of owners surveyed say they have a will 30%
Of owners surveyed say they have an updated estate plan
Source: Exit Planning Institute | Business Enterprise Institute
69%
of business owners say they have an exit strategy on their to-do list
The Exit Planning Process
The Three Foundations of Exit Planning
Exit planning is built on three interconnected pillars that must work in harmony:
Business Planning
Financial Planning
Personal Planning
Maximize enterprise value
Build transferable systems
Reduce owner dependency
Identify & groom successors
Define financial freedom number
Build wealth outside the business
Tax-efficient transfer strategies
Investment & income planning
Define post-exit purpose & identity
Family dynamics & communication
Align values with legacy goals
Estate planning integration
The Value Acceleration Methodology
A structured, milestone-driven process used by CEPAs:
1 Discover Assess owner readiness, business value, and personal goals Estate Planners work Here
2 Prepare Build the exit plan and align all advisors Estate Planners work Here
3 Decide Select exit path and timeline, stress test scenarios
4 Execute Implement plan, close the transaction or transition
The Value Acceleration Methodology
A structured, milestone-driven process used by CEPAs:
1 Discover Assess owner readiness, business value, and personal goals *Look at formation and governing documents, estate plans, divorce decrees, tax returns, deeds, corporate minutes, contingency plans, etc.
2 Prepare
Build the exit plan and align all advisors *De-risking by making sure that all of the legal documents work together and that the documents are understood and are transparent.
3 Decide
Select exit path and timeline, stress test scenarios
4 Execute Implement plan, close the transaction or transition
Setting the Stage
Hypotheticals
Brothers are co-owners of a biz
Brother 1 is dying.
Both brothers go to an estate planner who drafts mirror trusts holding the shares in trust for their kids and the wives would get the financial benefit in the meantime.
It also gave the wife the ability to fire a trustee for any reason at all.
Surviving wife wanted to sell. Brother wanted to keep running the business.
Wife went through 4 different trustees to try to get the business to sell.
Setting the Stage
Hypotheticals
Biz docs and EP docs clash
Business documents say only biological family members who work here are the only ones who can own shares.
EP documents give the shares in trust to children who don’t work there.
Setting the Stage
Hypotheticals
Shotgun Agreements
Last man standing owns the entirety of the company
As people (usually siblings) pass, the business buys their shares
A distribution needs to be made and a votes needs to happen while the estate is in probate. A determination needs to be made about the value of the shares.
And none of the documents define value and voting Source:
Setting the Stage
Hypotheticals
Why does this happen?
Owners don’t memorize their legal documents
Goals and documents are often not updated
Typically done with one or two family members and usually aren’t done
Not reviewed in a team process
How can we help?
Client feedback
What do families say they need?
Broader discussions based on cultural norms, dreams, goals and having documents reflect those as much as the technical work.
Non-technical people-based issues cause stalling and impasses. Especially when clients are going through an emotional time.
Skills beyond professional qualifications including active listening and relationship building.
Team leadership with advisors who work together instead of in silos. Source: Exit
The Advisory Team
The Exit Planning Advisory Team
The CEPA: Quarterback of the Team
Certified Exit Planning Advisor
Educates the business owner on exit options
Conducts a comprehensive business assessment
Facilitates goal setting and priority alignment
Coordinates all advisors around a unified plan
Monitors progress and course-corrects as needed
Bridges business planning with personal planning
Your Role in the Process
Biz Attorneys: document strategy & legal structuring
Bankers: financing, SBA & acquisition structures
CPAs: tax strategy & deferred comp planning
Financial Advisors: wealth outside the business
Estate Planners: succession & legacy integration
Helping Clients Understand Their Documents
Possible Business Documents / Due Diligence
Possible Personal Documents
Combining Estate Planning & Business Succession Planning
Role 1: Helping Owners Build Their Personal Plan
A business exit is often the largest financial transaction of an owner's life. Without a personal estate plan in place, value realized at closing can be lost to taxes, family conflict, or lack of direction.
Review or Establish Wills & Trusts
Ensure instruments are updated to reflect the anticipated liquidity event and intended heirs.
Beneficiary Designations
Coordinate retirement accounts, life insurance, and TOD designations with the overall estate plan.
Incapacity Planning
Powers of attorney, healthcare directives — critical before a transaction closes.
Post-Exit Income Planning
Determine how the owner will be 'paid' post-exit — installments, annuity, trust distributions.
Family Communication Strategy
Help owners navigate wealth transfers to heirs with equalization and fairness considerations.
Asset Protection Structures
Identify entity structures and trusts that protect proceeds from creditors and litigation.
Role 2: Ensuring Business & Estate Documents Align
A critical — and often overlooked — function of the estate planner in exit planning is ensuring that business-level documents are consistent with personal estate planning documents.
Business Documents
Buy-Sell Agreements (funded? trigger events?)
Operating Agreements / Shareholder Agreements
Stock Restriction & Transfer Provisions
Key Person Life & Disability Insurance
Employment & Non-Compete Agreements
Estate Planning Documents
Wills & Revocable Living Trusts
Irrevocable Trusts (IDGT, SLAT, ILIT, GRAT)
Family Limited Partnerships / LLCs
Durable & Healthcare Powers of Attorney
Beneficiary Designations & TOD Documents
Buy-sell agreements that conflict with trust ownership provisions are a leading source of post-exit litigation.
Role 3: Philanthropy as a Planning Strategy
For many business owners, a sale or transition triggers both a tax event and a legacy conversation. Strategic philanthropy can achieve both tax efficiency and meaningful impact.
Donor-Advised Fund (DAF)
Most flexible
Contribute appreciated business interests pre-sale. Receive immediate deduction, avoid capital gains, recommend grants over time.
Establish lasting family legacy vehicle. Provides control over grantmaking and multi-generational philanthropy opportunities.
Charitable Remainder Trust (CRT)
Transfer appreciated stock or business interest; receive income stream for life or term, then charity receives remainder.
Qualified Opportunity Zones
Reinvest sale proceeds into QOZ funds to defer or eliminate capital gains while supporting community development.
Common Estate Planning Mistakes in Business Exits
Agreements drafted years ago may conflict with current trust structures, have stale valuations, or lack funding mechanisms.
Owner's personal trust may not hold business interest properly — triggering unintended probate or losing step-up in basis.
If the business is the primary asset, heirs may be forced to sell under unfavorable conditions to pay estate taxes.
Gifting interests before a sale (while values are lower) can transfer significant wealth tax-free — often left on the table.
Charitable planning done post-closing misses capital gains avoidance — the single biggest tax benefit of pre-sale giving.
Action Steps: How to Get Involved in Exit Planning
Identify Your Business Owner Clients
Build Relationships with CEPAs
Review your client base — any business owner over 50 with no written exit plan is an immediate priority conversation.
Audit Existing Business Owner Documents
Review buy-sell agreements, operating agreements, and titling for alignment with current estate plans — this alone adds value.
Connect with local Certified Exit Planning Advisors to create a formal referral network. You bring estate expertise; they bring the process.
Introduce Philanthropy Early
In any business sale conversation, ask about charitable intent before closing. Pre-sale planning creates maximum impact.
Death Dress Rehearsal
In the Business
C-suite executives
Family members (Spouses? Partners?)
Key Employees
Advisors outside the business
Attorneys: Business & Estate Planners
Bankers: financing, SBA & acquisition structures
CPAs: tax strategy & deferred comp planning
Financial Advisors: wealth outside the business
Insurance: protection & rates for future owners
Key Takeaways
1 Exit planning is not just a business transaction — it is a comprehensive life planning process that requires estate planning expertise at every stage.
2 The $10+ trillion wealth transfer driven by baby boomer business owners represents one of the greatest opportunities for estate planners in a generation.
3 Document alignment between business agreements and estate planning documents is a non-negotiable element of a sound exit plan.
4 Philanthropic strategies deployed before a business sale can provide the dual benefit of significant tax savings and meaningful legacy impact.
5 Estate planners who engage with exit planning teams position themselves as indispensable advisors — not just document drafters.
Questions & Discussion
Legal Ethics & Estate Planning
Jim Reist Attorney Smidt, Reist & Keleher, P.C.
Day 2: MARCH 4 2026
SESSION 6
3:45pm
Dream Legacy to Reality with Directed Trusts
Patrick Anderson EVP, Chief Fiduciary Officer & Market Leader Adams Brown Trust Solutions
Mike Smith Managing Director Adams Brown Trust Solutions
Thank You!