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Estate
planning is the process of transferring one’s estate from
one generation to the next in an efficient manner, avoiding
probate and minimizing estate taxes.
Ultimately, one must decide
who will be the beneficiary of the estate, what the beneficiaries
are to receive and when they are to receive the property.
Currently, the estate tax
system is confiscatory, as the tax rate begins at 37% for
estates valued over $675,000 and reaches 55% for estates valued
at over $3,000,000.
Various planning techniques may
be used to minimize the estate tax which include:
- Drafting or adding a bypass trust to your current trust
arrangement
- Begin annual gifting
- Gifting of the unified credit to an irrevocable trust
- Purchase life insurance inside of an irrevocable trust
- Charitable giving
- Establish durable Power of Attorney for health care decisions
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