Estate Planning Maze:

Estate Planning: While current federal estate and gift taxes (unified tax credit) have exempted many estates from paying substantial estate taxes, there are those who have built significant wealth and need to carefully plan to minimize estate taxes and to facilitate their wishes upon their passing.

Tax Law Changes Likely: As the U.S. federal government searches for ways to bring down both its deficit and related government indebtedness, there is a high likelihood that a wholesale re-writing of the tax code could be in the offing as a means of providing such additional revenues. A potential re-invention of the tax code could mean a substantial change the dynamics of estate planning.

Current Tax Options Available: Below is a rudimentary illustration of the a sampling of tools and options available for those possessing more complex situations (blended families, family businesses, charities, non-liquid assets, etc.) regarding their bequests.

Illustrative Proposes Only: The chart below is provided only for illustrative purposes and is not intended as legal advice nor as estate planning template. While care was exercised in its construction, there can be no guarantee of its accuracy. You should contact an attorney who has an expertise in estate planning prior to embarking on the conceptualization, development and implementation of an estate plan designed for your needs.

Illustrative Estate Planning Options
(For Illustrative Purposes Only; Not Inteded as Legal Advice; Consult Your Attorney Prior to Creating a Legal Structure for any Estate Plan Contemplated)
Death
Owner Titled Assets
Home, Real Estate, Investments, Personal Property, etc...
Jointly-Held Property
Rights of Survivorship; or, Ten in Entirety; 1/2 of Property Value
Qualified Retirement Plans
IRA
401K
Personal Plans
Others
Annuities
Life Insurance
Gifts, Direct Gift
Person(s) or Entities
Trust, LP or Other Entities
Charitable Foundation
Living Trust
Will
Executor tax Clause (Who Pays Taxes) Simultaneous Death Clause
Irrevocable Trust
(Eliminates Probate and Estate Taxes, Protects Assets, Reduces Cap Gains, Income Taxes and 1040 Tax Benefits)
Types:
Self-Settled Spend Thrift Trusts
Self-Interest Charitable Trusts
Grantor Trusts
Qual Personal Residence Trust (QPRT)
Grantor Retained Annuity Trust (GRAT)
Grantor Retained Income Trust (GRIT)
Grantor-Retain Unit Trust (GRUT)
Life Insurance Trust (LIT)
Educational Trust (EDT)
Revocable Trust
Probate Avoidance
Management Plans
Tax Planning Provisions
Probate
State Process for Settling Estates
Gross Estate
Incident of Ownership
Less Deductions
Marital Deductions
Charitable Contributions
Estate Administration
Taxable Estate
Compute Estate Tax
Apply Lifetime Credit
Trusts
Types
Credit Shelter (A/B) Trusts
Marital Trust (#, AD)
Qual Term Interest Property Trust (QTIP) (*, #, AD)
Family Trust (#, AD)
Charitable Lead Trust (CLT)
Charitable Remainder Trust (#)
Dynasty Trust (DT) (#)
Special Needs Trust (SNT) (#)
Beneficiary
Key
* Can Be Either Revocable or Irrevocable Depending on Terms
# Can be Established by Living Trust or Testamentary Trust
AD: Effective Only After Death
Revocable Trusts Avoid Probate
Irrevocable Trusts Reduce Income and/or Estate Taxes

In connection with the GrowthIncome Group, Francomano and Francomano, P.A. (attorneys at law), can assist in the construction and implementation of these fundamental documents as well as assist in development, construction and documentation of more complex estate plans.

Estate Planning Intro Retirement Steps
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