GRATS: A Great Estate Planning Tool
...estate over $2,000,000 (and it’s growing) are financially able and psychologically willing to part currently with principal and eventually with the cash flow it produces, are willing to make lifetime...
...estate over $2,000,000 (and it’s growing) are financially able and psychologically willing to part currently with principal and eventually with the cash flow it produces, are willing to make lifetime...
...gift interests in these entities. Operating companies are companies that are engaged in a business other than holding assets for sale or rent. Two common methods of valuing an operating...
...probate fees can be reduced or avoided by setting up revocable living trusts. While more expensive to setup than wills, trusts save thousand of dollars in probate fees. While trusts...
...of financial crisis. While the benefits of estate planning are well known – including providing for your family and friends, avoiding probate, reducing estate taxes, helping a favorite cause, and...
...This essentially generates a nontaxable gift to the beneficiaries, thereby reducing the grantor’s gross estate without incurring estate or gift taxes. Under section 2036(a)(1), however, should a trust instrument require...
...be some certainty about the source and extent of liquid funding. When there is a reliable source of funding, payment in full at the closing may be possible. If funding...
...life. The collective thinking of the planning community has evolved tremendously over the past 10 years. The time has come for asset protection planning and estate planning to be joined...
...the initial stages, it is receiving significant commentary by estate planning professionals. Its enactment would have major implications on widely used transfer techniques for family limited partnerships and other pass...
Forbes.com has an article on where not to die. Sixteen states and the District of Columbia (shaded in red) impose their own estate taxes. The dollar amount exempted from tax...
...values provide estate-planning and gifting opportunities. In addition, low interest rates provide for certain gift-leveraging techniques, which rely on the IRS’s monthly published Applicable Federal Rates (AFRs). A combination of...
...preferred interests, thus ‘freezing’ the value of his or her retained share of the business, while the common interests would be gifted to the owner’s children. Those common interests would...
...significant, if any, gift tax cost. A GRAT is structured by transferring appreciating property to a trust to last for a specified duration of two to five years. In return,...