Estate Planning Concepts

An estate plan can assess the fair market value of an estate and the potential tax on the capital gains that will be due.An estate freeze or a partial freeze is a way to transfer all or a portion of the value of a company to new owner-heirs. Estate freezes coupled with the intelligent use of life insurance can help reduce the effect of a massive tax-bite on your estate. Such planning can also free up capital for retirement when you know, for example, that life insurance will pay the tax bill.

An estate is worth more than just money. A family business, a summer cabin on the lake or an antique car collection may be part of a legacy, rich with family history, that your client wants to pass on to his or her children and grandchildren. The challenge is to develop a plan that satisfies your client's desire to pass along specific assets to certain individuals, while making sure each family member is treated fairly and equitably. Because assets may not easily be dividable, may have fluctuating values, lack liquidity, or have substantial tax liabilities an Estate Equalization can ensure equalization of these assets.

A Beneficiary Limited Access Trust (BLAT) is a flexible Irrevocable Life Insurance Trust (ILIT) that provides lifetime access to cash values for a child (or other beneficiary) while keeping the policy outside the parent’s and child’s estates.

A Dynasty Trust is a special type of Irrevocable Life Insurance Trust (ILIT) that can preserve and protect estate assets for a long period of time. A Dynasty Trust helps to ensure a legacy for children, grandchildren and future generations.

A Spousal Limited Access Trust (SLAT) can make your traditional ILIT more flexible by providing access to the life insurance policy’s cash values. Will enable you to have access to money should you have an emergency, need supplemental retirement income or have another need, while maintaining the policy’s death benefit outside the taxable estate.

Leaving your financial success to your heirs can be accomplished through Charitable Planning of life insurance in estates. Taxes associated with mortality can decrease your accumulated wealth so substantially that nearly half could be taken by the government, this is why many choose to set up their estate to provide a major gift at the death of the insured.