Advanced Estate Planning

Each person’s estate planning needs may differ based on their particular circumstance and their desired estate planning objectives. While a comprehensive estate plan provides a great foundation for most people, some individuals that have unique tax issues and charitable or special gifting desires, other advanced estate planning strategies must be employed. At LBJ we have attorneys with advanced estate planning experience necessary to meet the needs of more complicated estates. Some of the advanced estate planning strategies includes the following:

Each person’s estate planning needs may differ based on their particular circumstance and their desired estate planning objectives. While a comprehensive estate plan provides a great foundation for most people, some individuals that have unique tax issues and charitable or special gifting desires, other advanced estate planning strategies must be employed. At LBJ we have attorneys with advanced estate planning experience necessary to meet the needs of more complicated estates. Some of the advanced estate planning strategies includes the following:

Irrevocable Trusts

An irrevocable trust is similar to a revocable trust except that an irrevocable trust cannot be modified or terminated after it is executed. Irrevocable trusts are generally established for special gifting and tax considerations. In an irrevocable trust the settlor transfers title to assets (“gifts”) gifted to the trustee of the irrevocable trust and the settlor gives up all of his or her rights so that upon death those assets will not be considered part of his or her estate for tax purposes.

Charitable Trusts

A charitable trust is a type of irrevocable trust established for the benefit of charities. In addition to Charitable Trusts, LBJ also assists clients in establishing Private Family Foundations to help individuals meet their philanthropic goals during their lifetime and to allow their children and grandchildren, as directors, to continue fulfilling them after death.

Gifting

Some individuals with large taxable estates incorporate a gifting program, during their lifetime, to reduce the size of their estate so that upon death their estate tax burden is eliminated or reduced as much as possible. There are numerous ways LBJ assists client with this type of planning. Sometimes it is an annual gifting program using an individual’s annual gift exclusion (currently, 2014, $14,000.00 per year/ per done) to gift interests in real property, a family business, or other assets to an Irrevocable Trust. Other times it is assisting with a gift to an Irrevocable Life Insurance Trust to purchase a life insurance policy, which can be used later to provide funds necessary to meet an estate tax burden, without having the value of that policy included in the taxable estate. Advanced Estate Planning strategies are not for everyone, but if your estate is at or above the federal estate and gift tax exemption amount, currently $5.43 Million for 2015, then you may want to incorporate some of the strategies into your estate plan.

If you, or someone you know is in need of the above-mentioned legal services, please call our office at (619) 683-2545 to schedule a free, no obligation, one-on-one consultation with one of our experienced Estate Planning lawyers to discuss your legal needs.