Tuesday, August 12, 2014
Freezing the value of assets and keeping the value of an estate from appreciating overtime can reduce the amount of taxes for an estate. Here are three estate planning tools to reduce the taxes faced by the estate.
- Put assets into a Family Limited Partnership to keep asset value from increasing and decrease taxes
- Create an Intentional Defective Grantor Trust and pay the taxes with non-trust funds to maximize trust income and decrease the value of the estate
- Use a Grantor Retained Annuity Trust to freeze the value of assets and keep the overall taxable value of the estate from increasing
See Brian Luster & Steven Abernathy, 3 Ways to Avoid Tax Hits in Estate Planning, Medical Economics, June 10, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.