In our last post, we took a look at the Intentionally Defective Grantor Trust as a technique for minimizing estate and gift taxes. Another technique, also trust-based, is the Grantor Retained Annuity Trust (GRAT). GRATs can allow those who establish them to transfer a significant number of assets with minimal or no estate and gift tax.
It is quite common for individuals to start thinking about building an estate plan once they have children, as they naturally begin to consider who will manage the assets left to the children and who will act as guardian in the event of untimely death.
In our last few posts, we discussed some methods and tools that can be used by individuals that want to pass their wealth on to others while minimizing tax consequences and protecting the value of their assets. In this post, we will conclude that discussion by talking about a few other estate planning and asset protection strategies.
In our last post, we discussed the estate tax and how it is scheduled to come back into existence in 2011, albeit with rates far higher than when we last saw it. In this post, we wanted to discuss a few of the tools that an individual might use to reduce the impact the estate tax may have on his or her surviving family members.