Top Ten Estate Planning Techniques

October 7, 2012 — Leave a comment


Top 10 Estate Planning Techniques

10. $13,000 Annual Gift Tax Exclusion:
Technique to allow gifts without the imposition of estate or gift taxes.

9. Charitable Remainder Interest Trust:
A trust whereby donors transfer property to a charitable trust and retain an income stream from the property transferred. The donor receives a charitable contribution income tax deduction, and avoids a capital gains tax on transferred property.

8. Children’s or Grandchildren’s Irrevocable Education Trust:
A trust used by parents and grandparents for a child’s or grandchild’s education. May be used in tandem with the Maryland Prepaid College Trust to generate a MD tax deduction of up to $2,500 per year.

7. Family Limited Partnership:
An entity used to:
Provide asset protection for partnership property from the creditors of a partner

Provide protection for limited partners from creditors

Enable gifts to children and parents maintaining management control

Reduce transfer tax value of property.

6. Fractional Interest Gift:
Allows a donor to transfer partial interests in real property to donees and obtain fractional interest discounts for estate and gift tax purposes.

5. Health Care Power of Attorney:
Instrument used to allow a person you name to make health care decisions for you should you become incapacitated.

4. Irrevocable Life Insurance Trust (ILIT):
A trust used to prevent estate taxes on insurance proceeds received at the death of an insured.

3. Private Foundation:
An entity used by higher wealth families to receive any otherwise taxable property so as to eliminate estate taxes on the death of a surviving spouse.

2. Durable General Power Power of Attorney:
Instrument used to allow an agent you name to manage your property if you become incapacitated.

1. Revocable Living Trust:
A device used to avoid probate and provide management of your property, during life and after death.

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