Estate Planning and Carried Interest: Estate Tax Reduction Strategies for Private Equity and Hedge Fund Sponsors

Kevin Matz and other panelists will present a panel discussion featuring, “Estate Planning and Carried Interest: Estate Tax Reduction Strategies for Private Equity and Hedge Fund Sponsors” on Thursday, June 5, at 1:00pm EST. The panelists will detail how planners can assist in structuring the transfer of carried interest from founders to family members, analyze the specifics of Chapter 14 of the Internal Revenue Code, and examine the effects on founders’ estate planning.

Additionally, the panel will discuss how a team of professional advisers can provide private equity and hedge fund managers with tailored carried interest planning strategies that leverage wealth transfer opportunities while minimizing unintended adverse tax consequences.

Some of the key issues this panel will review:

• How can proper planning help avoid triggering adverse tax consequences under IRC Section 2701?
• Which estate planning techniques are most effective for transferring carried interest?
• How can a fund founder structure an investment to take advantage of the vertical slice exception?
• What are the principal “non-vertical” planning ideas to consider?
• What is the impact on estate planning of the final regulations under IRC Section 1061 that were released in January 2021 concerning the income taxation of carried interests in private investment funds?