A CNN Money/Fortune Magazine article published yesterday gives a basic overview of some estate planning fundamentals. See How to avoid the ‘death tax’ by Janet Morrissey, 6/4/09.
As we’ve mentioned, although the estate tax is set to expire at the end of 2009, Congress is expected to pass new legislation that will keep the estate tax rate at 45% with a $3.5 million exemption.
Morrissey’s article touches on gifts, life insurance, irrevocable trusts such as life insurance trusts and GRATs (grantor-retained annuity trusts), and using limited partnerships to reduce the value of assets for tax purposes. Although the article does not mention it, the Obama Administration recently proposed restricting the use of GRATs and valuation discounts going forward, so the time to take advantage may be now.
The article also stresses the importance of periodically reviewing your estate plan. Finances, relationships, and laws change over time, and an estate plan created ten years ago may no longer make sense.
Special thanks to Yonina Elnadav for bringing the article to my attention.
SE
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