Tax Techniques For Wealth Preservation & Transfer Planning
Despite the changes in the tax law, the sometimes-confiscatory impact of income, estate, & gift taxes remains. The following strategies can help eliminate taxes completely on a portion of your estate, and enable your estate to pay the remaining taxes at a cost of 8 to 10 cents, or less, on the dollar.
| 1. |
Wills, Trusts & Asset Shifting : Make proper use of these means to take advantage of the Unified Credit/Federal Estate Tax Exemption as well as minimize probate costs and ease administration |
| 2. |
Annual Gifts : Use the annual Gift Tax exclusion and leverage these gifts by wise selection of the assets to be gifted |
| 3. |
Lifetime Gifts : Consider using part, or all, of your Federal Estate Tax Exemption now to transfer appreciating assets, thus transferring the appreciation estate-tax free |
| 4. |
Generation Skipping Gifts : Consider gifts to grandchildren when your own children have no need for further assets, and may face tax problems of their own—utilize your generation skipping tax exemption |
| 5. |
Irrevocable Life Insurance Trusts (ILITs) : Use ILITs to shelter life insurance proceeds from estate taxes (review and/or restructure insurance to include products designed to provide estate liquidity) |
| 6. |
Private Annuities & Installment Sales : Use these devices to spread capital gains on appreciated assets and shift growth outside your estate |
| 7. |
GRATS & QPRTS : Make use of Grantor Retained Annuity or Qualified Personal Residence Trust to leverage existing exemptions by reducing transfer value and lowering transfer costs without losing income interests |
| 8. |
Grantor Trust : Consider a grantor trust to accelerate the transfer of wealth out of your estate |
| 9. |
Family Limited Partnerships or Limited Liability Companies : Consider these vehicles to take advantage of valuation discounts and to control assets while effectively excluding them from your estate |
| 10. |
Charitable Strategies : Consider a Charitable Remainder Trust or Charitable Lead Trust as a means to diversify and/or increase your current income, receive a current charitable deduction for income taxes, potentially reduce capital gains tax liabilities, and ultimately endow your favorite charity or foundation |
| 11. |
Qualified Plan Balances : There are several techniques to move these assets without the confiscatory income & estate taxes. This is one of the most highly taxed assets. |
CONSULT YOUR OWN TAX ADVISOR
BEFORE IMPLEMENTING THESE STRATEGIES
For Additional Information Please Contact Our Office. |
