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Berdon Estate Planning Guide - Strategies for 2016

02.24.2016 | Client Alert

Whether you are setting up your first estate plan or looking for ideas to leverage the latest planning opportunities, this Guide is your resource.

The on-line Berdon Estate Planning Guide offers insights and strategies to help reduce the impact of taxation, ensure that your loved ones are provided for, and pass on the maximum amounts to your heirs in the most tax-effective way. You'll find valuable information in such areas as estate taxes, gifting, family-owned business opportunities, charitable giving, life insurance, unmarried and same sex couple concerns, and other key areas.

The Guide is available in electronic form - which updates as tax laws change - at www.berdonllp.com, or you can request a hard copy by clicking here.

Here a few of the areas covered:

  • "Portability" of Your Estate: When one spouse dies and all or part of the estate tax exemption is unused, the estate can elect to permit the surviving spouse to use the deceased spouse's remaining estate tax exemption.
  • Credit Shelter Trusts: A major benefit of these trusts is the ability to avoid taxes on future appreciation of assets in the trust.
  • Splitting Assets: A case study demonstrates where a tax advantage was gained when one spouse held more assets than the other.
  • Second-To-Die Life Insurance: This is a valuable, but often overlooked, tool for providing liquidity to pay estate taxes.
  • The ILIT Advantage: A properly structured irrevocable life insurance trust (ILIT) could save you estate taxes on insurance proceeds.
  • Family Limited Partnerships: A carefully structured FLP allows you to increase the amount of gifts without increasing the gift tax cost.
  • Private Foundations: You can form one to support your charitable activities or make charitable grants. If it qualifies for tax-exempt status, your charitable contributions to the foundation will be deductible.
  • Estate Tax Deferral: Normally estate taxes are due within 9 months of your death. However, if closely held business interests exceed 35% of your adjusted gross estate, the estate may qualify for a deferral of tax payments.
  • Dynasty Trusts: For high net worth individuals, a dynasty trust is a long-term trust created to pass wealth from generation to generation without incurring transfer taxes such as estate and gift tax.

Questions? Contact your Berdon advisor or Scott Ditman, CPA/PFS. Berdon LLP, New York Accountants

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