SOPHISTICATED ESTATE

PLANNING TECHNIQUES

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Irrevocable life insurance trust (ILIT),

sale to an intentionally defective

grantor trust (IDGT), spousal lifetime

access trust (SLAT), generation-

skipping transfer (GST trust), qualified

personal residence trust (QPRT), 

grantor retained annuity trust 

(GRAT), charitable remainder trust 

(CRAT and CRUT) and charitable lead

trust (CLAT and CLUT)

 

 

Above is a list of sophisticated estate planning techniques that may be used to transfer wealth to beneficiaries, while minimizing estate and gift tax consequences.  These techniques are typically utilized by individuals who are already making use of an optimal marital deduction/unified credit tax formula in a Will or revocable trust agreement.  

 

For high net-worth individuals, it is important to note that, if you have a credit shelter trust as part of your current estate plan, it is recommended that you revisit which exemption amount (Federal or New York) is specified for the funding of the trusts.  The choice of credit shelter trust funding amount could have a significant impact on the overall estate tax burden.  We would be pleased to assist you in analyzing your estate planning documents to determine whether this issue should be addressed.