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- If Married, Use Both Exemptions
Living Trust with Tax Planning- Uses both spouses’ estate tax exemptions, doubling the amount protected from estate taxes and saving a substantial amount for your loved ones.
- Remove Assets From Estate
Make Annual Tax-Free Gifts- Simple, no-cost way to save estate taxes by reducing size of estate
- $13,000 ($26,000 if married) each year per recipient (amount tied to inflation)
- Unlimited gifts to charity and for medical/educational expenses paid to provider
Transfer Life Insurance Policies to Irrevocable Life Insurance Trust
- Removes death benefits of existing life insurance policies from estate
- Included in estate if you die within three years of transfer
Qualified Personal Residence Trust
- Removes home from estate at discounted value
- You can continue to live there
Grantor Retained Annuity Trust / Grantor Retained Unitrust
- Removes income-producing assets from estate at discounted value
- You can continue to receive income
Limited Liability Company / Family Limited Partnership
- Lets you start transferring assets to children now to reduce your taxable estate
- Often discounts value of business, farm, real estate or stock
- Can protect the assets from future lawsuits, creditors, spouses
- You keep control
Charitable Remainder Trust
- Converts appreciated asset into lifetime income with no capital gains tax
- Saves estate taxes (asset out of estate) and income taxes (charitable deduction)
- Charity receives trust assets after you die
Charitable Lead Trust
- Removes asset from your estate, saving estate taxes
- Income goes to charity for set time period, then trust assets go to loved ones
- Buy Life Insurance Through Irrevocable Life Insurance Trust
- Can be inexpensive way to pay estate taxes and/or replace charitable gifts
- Death benefits not included in your estate
- If Married, Use Both Exemptions