logo



USE ESTATE REDUCTION OR FREEZING TECHNIQUES...

In addition to the estate planning basics (Wills, Durable Power of Attorney, QTIP, disclaimers, etc.) the following alternative techniques are definitely worth considering.

UNIFIED CREDIT GIFTS

A married couple will soon be able to give $2,000,000 to their children and grandchildren and pay no gift tax. Gifts can be outright, or in trust. Under The Tax Payer Relief Act of 1997 the $600,000 per person Unified Credit has been gradually increasing to the $2,000,000 mark that and it will be and remain at in the year 2006.

GRANTOR RETAINED TRUSTS (GRIT, GRAT or GRUT)

A way for parents to transfer property, at its present value for estate tax purposes, to their heirs while maintaining a steady income stream (income, annuity or percentage of value) for a specified number of years.

QUALIFIED PERSONAL RESIDENCE TRUST

A way of transferring your residential property, at its present value for estate tax purposes, to your heirs while you still retain the right to live in your home.

PRIVATE ANNUITY

Parent(s) transfer property to one, or all, of their children who in turn pay the parent(s) an income for life.

SELF-CANCELLING INSTALLMENT NOTE

Parent(s) sell property to one, or all, of their children who in turn pay the parent(s) an income for life. Note is canceled upon parent's death.

RECAPITALIZATION AND OTHER BUSINESS FREEZE TECHNIQUES

Used to reduce taxes where the parent(s) own 100% of a family business' common stock. Requires creating a new class of voting preferred stock and the transfer of the common to the children.

PHILANTHROPIC PLANNING TECHNIQUES

Utilize some of the various Charitable Estate Planning Trusts (such as the Charitable Remainder, Lead, or Annuity Trusts) and techniques to provide current income along with substantial gift and estate tax deductions, while removing appreciated property from the estate.

FAMILY LIMITED PARTNERSHIP

Parent(s) set up a partnership to which they contribute certain kinds of property they own (unencumbered real estate, securities etc) in return for general and limited partnership units, the latter of which they can gift to their children at significantly discounted values, reducing both their estate size and it's future growth.

or

Utilize survivorship life insurance to cover cost.

Every Alternative Has Its Advantages & Disadvantages Let The Experts At Family & Business Insurance Planners Help You Develop The Estate Planning Strategy That Best Suits Situation.



Underwriting | Lowest Possible Premium Search| Disability Insurance
Estate Planning | Alternative Premium Payment Plan | Free Quick Quote Form
Home