Advanced Estate Plans

When your primary estate plan is in place, some clients engage in advanced estate planning to reduce taxes, preserve retirement accounts, or protect family and business interests, among other objectives. Advanced planning employs various estate planning methods, including freezing an asset's value and passing future gains to others, transferring assets at below fair market rates so that you can transfer more of an asset within available gift tax exemption amounts, or passing highly appreciated assets to a nonprofit to avoid capital gains exposure. The most common advanced planning includes:

  1. Irrevocable Life Insurance Trusts (ILIT) to ensure insurance proceeds are outside of your taxable estate to save on estate taxes and ensure cash funds are available in the event an estate tax is due;
  2. Split interest trusts to freeze the value of an asset to keep future appreciation out of your taxable estate and push appreciation to your beneficiaries estate tax free, including Qualified Personal Residence Trusts (QPRT) and Grantor Retained Annuity Trusts (GRAT); and
  3. Retirement Plan Trusts (RPT) to ensure your beneficiaries do not waste the advantages of tax-deferred growth on an inherited IRA.