Thursday, March 31, 2016
Volatility in the current market has created a lot of opportunities for estate planners. “Clients with taxable estates (currently, over $5.45 million for individuals or $10.9 million for married couples) generate transfer tax savings by making gifts when asset values are low – and have potential for future appreciation.” Often times it is a good idea for estate planners to work in sync with their client’s portfolio managers to achieve optimum investment results. This column also discusses why it is a good idea to look into grantor retained annuity trusts (GRATS). “With Internal Revenue Code Section 7520 rates around 2 percent, it doesn’t take much for a GRAT to be successful with securities whose value is impacted negatively by general market swings.” In this volatile market it is important to have a good solid estate plan with the client’s intentions clearly expressed.
See Bryan D. Kirk, Making Use of Market Volatility, Wealth Management, March 31, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.