Andrew Osterland discusses why 2011-2012 is the 'perfect storm' of opportunities for wealthy families to transition assets to the next generation. The elements start with the elevated estate and gift tax exclusion amount of $5 million per spouse (including portability provisions) with the excess taxed at 35%. Next, there is the $13,000 annual gift tax exclusion coupled with historically low interest rates that are conducive for intra-family loans as well as grantor retained annuity trusts (GRATs). Osterland also discusses effective trust strategies for estate planning such as QPERTs, GST trusts, and charitable annuities. He closes by noting that current laws are subject to change in 2013, and families that can afford it should strongly consider taking advantage of current conditions before it becomes too late.
See Andrew Osterland, "A 'Perfect Storm' for Estate Planning," investmentnews.com (Nov. 6, 2011).
Posted by Andrew Hodes, Associate Editor, Wealth Strategies Journal.
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