Advanced Estate Planning

Did you know that:

1.  The estate tax rate is currently 45%?

2.  The estate tax is separate from the income tax, and is paid on the net value of all of your assets, including life insurance, owned at your death (in excess of the exempt amount)?

3.  For many families, paying estate taxes are totally voluntary?  They have to pay estate taxes because of their failure to plan properly.

Clearly, if you have an estate in excess of the exempt amount, you should consider legitimate, estate tax avoidance strategies.  For our clients with significant life insurance, we can help them save 45 cents on every dollar with an irrevocable life insurance trust (“ILIT”). An ILIT is designed to be the owner of your life insurance policies.  Assuming the trust is properly structured and administered, the life insurance will not form part of your estate at your death because you no longer own it.  Instead, 100% of the insurance proceeds are available to do what you intended – to provide for your loved ones.

If you have a very large estate, it is worth considering other estate tax avoidance strategies.  Many of these techniques involve giving assets to your loved ones during your life at a reduced value for tax purposes, thereby removing the assets and their future appreciation from your estate.

To determine which strategies are right for you and your family, please contact us.