As part of our estate planning practice, we offer more advanced estate planning strategies for high net worth individuals and families who require innovative solutions to minimize transfer tax exposure and preserve wealth for future generations. Various vehicles employed to accomplish these objectives may include gifting plans, asset value discounting techniques, estate “freezing” tools, and charitable giving.
Gift planning strategies range from making basic annual exclusion gifts, to more complex gifting, often times involving the use of family limited partnerships or family limited liability companies (FLPs/LLCs). FLPs/LLCs offer the opportunity to pool a family’s assets into a single entity in which family members own shares. These shares can then be passed along to younger generations through a lifetime gifting plan, whereby minority interests in the FLP/LLC are gifted (at a discounted value) over a series of years, effectively reducing or eliminating transfer tax in connection with the transfer of the FLP/LLC interests. We assist clients in establishing FLPs/LLCs and implementing gifting plans to accomplish tax minimization goals.
Estate “freezing” tools employed may include but are not limited to Grantor Retained Annuity Trusts (GRATs), Intentionally Defective Grantor Trusts (IDGTs), and Qualified Personal Residence Trusts (QPRTs).
For clients that are charitably inclined, our attorneys provide charitable planning techniques that employ tax efficient strategies that allow our clients to carry out their philanthropic mission while gaining significant estate and income tax savings in doing so. Charitable planning vehicles adopted may include trusts and private foundations.
Many of the advanced estate planning strategies discussed above trigger gift tax return filing requirements. Our attorneys routinely prepare gift tax returns and assist clients in procuring valuations and appropriate documentation relating to such gifts.
Please visit our Business Law services for more information regarding the formation of entities such as FLPs/LLCs, private foundations, and more.