Top 10 Estate Planning Techniques
By: PETER REISS, ESQ.
1. $13,000 Annual Gift Tax Exclusion: Technique to allow gifts without the imposition of estate or gift taxes.
2. Charitable Remainder Interest Trust: A trust whereby donors transfer property to a charitable trust and retain an income stream from the property transferred. The donor receives a charitable contribution income tax deduction, and avoids a capital gains tax on transferred property.
3. Children’s or Grandchildren’s Irrevocable Education Trust: A trust used by parents and grandparents for a child’s or grandchild’s education.
4. Family Limited Partnership: An entity used to:
– Provide asset protection for partnership property from the creditors of a partner
– Provide protection for limited partners from creditors
– Enable gifts to children and parents maintaining management control
– Reduce transfer tax value of property.
5. Fractional Interest Gift: Allows a donor to transfer partial interests in real property to donees and obtain fractional interest discounts for estate and gift tax purposes.
6. Health Care Power of Attorney: Instrument used to allow a person you name to make health care decisions for you should you become incapacitated.
7. Irrevocable Life Insurance Trust: A trust used to prevent estate taxes on insurance proceeds received at the death of an insured.
8. Private Foundation: An entity used by higher wealth families to receive any otherwise taxable property so as to eliminate estate taxes on the death of a surviving spouse.
9. Property Power of Attorney: Instrument used to allow an agent you name to manage your property if you become incapacitated.
10. Revocable Living Trust: A device used to avoid probate and provide management of your property, during life and after death.