Law Firm

Advanced Estate Planning Strategies

lawBenjamin Franklin famously said, “Nothing can be certain except death and taxes.” Unfortunately, without advanced estate planning strategies, many of your significant assets may end up with the IRS or state taxing authorities. For more information visit Personal Injury Lawyer Ogden UT.

Our firm specializes in providing sophisticated tools and techniques for individuals who want to preserve their family’s wealth and minimize estate taxes. These advanced strategies include:

Estate planning ensures that your property and assets go to the people and organizations you want them to. It’s a big responsibility and a complex task that requires careful attention to the ever-changing laws. Advanced estate planning strategies can protect your family’s assets against unforeseen circumstances and help minimize or eliminate taxes.

Having the right type of trust in place is one way to prevent your loved ones’ heirs from having to pay probate. Trusts can also keep your heirs’ assets out of the public eye and away from creditors, lawsuits, and liens. There are different types of trusts, including revocable and irrevocable, life insurance, charitable trusts, and more.

With so many options available, we can help you select the right type of trust for your needs. Trusts can be established through your will or a separate trust agreement during your lifetime. Then, you can customize your trust with how you would like your assets distributed. For example, you can specify that a certain amount should be given to your children at an age specified by you or that funds can only be used for college tuition.

Advanced estate planning can protect your family’s assets from high legal costs, taxes, judgments, and liens. This is especially important if your spouse or partner may predecease you. We can help you implement techniques to mitigate these risks, including setting up a qualified personal residence trust, a family limited partnership, Irrevocable Life Insurance Trusts, dynasty trusts, grantor retained annuity trusts (GRATs and CRUTs), and private foundations.

When preparing for the future, it’s important to consider your unique needs and circumstances. The Law & Mediation Office of Bracha Etengoff can create a comprehensive plan suited to your situation. If you have any questions or concerns, don’t hesitate to contact us to schedule a consultation with our team.

The main benefit of an estate plan is to preserve your family’s assets and protect them for the future while minimizing or eliminating taxes. This is an important consideration for families with valuable taxable assets, as estate taxes can be extremely costly. In addition, probate costs can be significant and may deplete the estate. Fortunately, many tools and strategies can help you minimize or eliminate taxes.

Most advanced estate planning techniques focus on reducing or eliminating federal wealth transfer taxes. This encompasses estate taxes, gift taxes, and generation-skipping transfer taxes. These taxes are imposed on everything you own and control at the time of your death.

To avoid paying these taxes, you must plan and give your assets away during your lifetime. This can be accomplished with several different types of trusts. However, it is important to consult with a professional to determine the type of trust most beneficial to you and your family.

One common technique is to use a grantor-retained annuity trust (GRAT) to reduce estate tax liability on appreciated assets. Another is to create a charitable remainder trust (CRT) to take advantage of a tax deduction on the appreciation of your assets. Finally, you can also use a trust to hold your IRA accounts and avoid paying a penalty for early withdrawals.

Aside from lowering estate taxes, advanced estate planning can help protect your assets from lawsuits and creditors. This can be done by incorporating various techniques, including creating a family or limited liability company. Another effective strategy is to use valuation discounts. 

These discounts are based on the fact that most estates have a high proportion of illiquid assets. In addition to reducing or eliminating estate taxes, advanced estate planning can also help to eradicate state inheritance taxes. This is an important consideration for high-net-worth individuals who live in states with inheritance taxes. While there are no federal inheritance taxes, some states impose this tax, and it is important to consider the impact on your heirs when deciding how to plan your estate.

A charitable remainder trust, or CRT, is one way to include your philanthropic goals in your estate plan. This irrevocable trust splits the ownership of assets between a current income beneficiary and a charity of your choice. You can transfer marketable assets into the trust and receive an immediate income tax deduction for the present value of the charities’ remainder interest, which is calculated using the fair market value of the donated asset, the expected annual payout (depending on the type of CRT) and a discount rate set by the IRS.

There are many types of CRTs, and your estate planning attorney can help you choose the right one to meet your unique needs. The most common types are antitrust and annuity trusts. Both provide a fixed annual distribution during the initial term of the trust. Typically, the allocation is based on a percentage of the initial funding value of the trust. Once the period of the CRT expires, the remainder of the assets will be distributed to a designated charity.

If you donate appreciated property to a CRT, the capital gains tax on that investment will be deferred until the trust dissolves or your heirs take the title. This is an especially effective strategy when you have a significant amount of appreciated property you’ve held for a long time.

While the benefits of donating to a CRT can be substantial, there are some limitations that you should be aware of. For example, the donation must be made five years before your death to avoid income taxes. Additionally, if you donate a large portion of your estate to a CRT, there may be gift and estate taxes to pay.

Advanced estate planning can be critical for families with significant wealth. It can help protect your family’s assets from high legal costs, creditors, judgments and liens, and federal and state taxes. We regularly assist affluent clients with sophisticated techniques like the use of Irrevocable Life Insurance Trusts (ILITs), Qualified Personal Residence Trusts (QPRTs), Dynasty Trusts, Family Limited Partnerships and Charitable Trusts (CRATs and CRUTs). Using these tools, we can help you reduce taxes while preserving your family’s legacy.

In addition to protecting assets for your loved ones, advanced estate planning allows you to support the causes that are important to you. By carefully orchestrating charitable giving, you can preserve your estate’s value and lower your taxes.

Many tools and entities can be used to achieve this goal, including trusts (CRATs and CRUTs), private foundations, and gifting strategies. Choosing the best options for your situation will depend on your family’s needs and the philanthropic goals you want to pursue.

Philanthropic planning is a great way to pass your values and passions to future generations. It also provides an opportunity to make a difference even after your death, which can be a tremendously satisfying experience.

It is critical to consult with estate planning professionals and representatives of charitable organizations before incorporating any philanthropic gifts into your plan. This will ensure that your charitable goals are aligned with your overall estate plan and that the necessary legal documents are properly prepared.

There are several ways to include charitable gifts in your estate plan, including a direct bequest to a charity of choice in your will or trust. You may also choose to establish a Donor-Advised Fund or private foundation to receive tax benefits during your lifetime and have more control over using your charitable assets after your death.

To learn more about how you can make a lasting impact on your community, contact a professional lawyer to schedule a consultation with one of our estate planning attorneys. We can explain the options available and help you create a strategy that aligns with your values, goals, and priorities. Call today to get started!