Top 10 Estate Planning Techniques

  1. $13,000 Annual Gift Tax Exclusion:

    The amount an individual can give away per person each year without the imposition of estate or gift taxes.

  2. Charitable Remainder Interest Trust:

    A trust to which a donor transfers property for the benefit of a charity while retaining an income stream from the property transferred. The donor receives a charitable contribution income tax deduction and avoids a capital gains tax on the transfer of the 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:
    1. Protect assets of a partnership from the creditors of a partner

       
    2. Protect limited partners from creditors of the partnership.

       
    3. 3. Enable gifts of partnership interests to children while the parents maintain management control.

       
    4. Reduce the transfer tax value of property.

  5. Fractional Interest Gift:

    A transfer of a partial interest in property to a donee at a discounted value for estate and gift tax purposes.

  6. Funding:

    The process of transferring assets you own as an individual into your Trust.

  7. Generation Skipping Tax:

    A tax levied on assets that are given to individuals who are more than one generation away from the donor. An example would be a grandparent giving an asset to a grandchild either during the grandparent's life or at death.

  8. Guardianship/Conservatorship:

    A court-supervised proceeding which names an individual or entity to manage the affairs of an incapacitated person. A guardianship may also include the duty to care for the incapacitated person.

  9. Health Care Power of Attorney:

    An instrument used to designate the person to make health care decisions for you should you become incapacitated.

  10. Irrevocable Life Insurance Trust:

    A trust used to prevent estate taxes on insurance proceeds received at the death of an insured.

  11. 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.

  12. Property Power of Attorney:

    An instrument used to designate an agent you name to manage your property if you become incapacitated.

  13. Revocable Living Trust:

    A device used to avoid probate and provide management of your property during your life and after your death.

Page Tools