Estate gift strategy to cut future taxes on heirs
The piece outlines Obama proposed rules for a 3.5 million personal exemption and 45 percent rate above that, with spousal transfers tax free but later taxes on the survivor's death. It discusses three avoidance paths and urges irrevocable trusts to gift seeds to children, projecting a 12 to 15 million estate and potential four million in tax.
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Tax Free Gift Strategies and Irrevocable Trusts for Families
The IRS sets a $12 000 annual gift tax exclusion per recipient, but gift splitting with a spouse allows $24 000 per year. An irrevocable trust can grow value for children, reduce taxable estates, and specify trustee powers and distributions. UGMA offers less tax advantage and earlier access at age 21. Consult an attorney for details and planning options. Greg Roberts is a certified financial planner with 35 years of experience.
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Greg Roberts
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