Wednesday, August 6, 2014
Here are four current estate-planning trends caused by recent developments:
- Increased favor and use of self-settled trusts: These trusts are allowed in 15 states and the current tax exemptions for gift and generation-skipping transfer at $5.34 million is making these a popular choice for asset protection.
- Seeking favorable states for asset protection for discretionary trusts: After a recent Florida case that protects trustees from being forced to use their discretion to make disbursements, the search is on for a similar solution for third-party discretionary trusts.
- Rising State Income Taxes Changing Estate Planning Considerations: With many states' income tax rates increasing, the interest in private placement life insurance and trusts creation in states with lower tax is on the rise as well.
- The creation of foreign grantor trusts by grantors without ties to the U.S.: The creation of trusts by foreign grantors that do have property or family in the U.S. is a new and increasing trend.
See Al W. King III, What’s Trending in the Estate-Planning World, Wealth Management, July 24, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.