Here's a short but important thought...someof the most powerful estate planning tools involve giving away your assets now, whether outright to beneficiaries or more likely in structured vehicles that move them out of your estate but still give you some (or a lot of) benefit. If your estate is one that is likely to see estate tax when you die (currently estates over $3.5 million net value), using your lifetime gift tax credits to make gifts now instead of later is often a good idea. It works well because the assets continue to appreciate but their values for gift/estate taxes will be the values at the time you make the gift.
It works well in good times, but now, with stocks at 50-60% of their previous values, and homes and investment properties at 60-80% of their previous values, the gifts you make give you more bang for your buck.
The names for some of these types of strategies are: Grantor Retained Income Trusts (GRITs), Qualified Personal Residence Trusts (QPRTs), Grantor Retained Annuity Trusts (GRATs), Grantor Retained Unitrusts (GRUTs) and Intentionally Defective Grantor Trusts (IDGTs). Yes, "defective" is part of the name, but in this case it's the kind of defect that's good for you. There are also still opportunities with Family Limited Partnerships (FLPs).
Review your estate plan with an experienced attorney (ours are always available) and get a list of all the planning opportunities you have--you'll be pleasantly surprised, and happy you did it before you lose this valuable opportunity.
