Without getting into too much detail, if your
estate is of sufficient size - $5 million plus - to be concerned about estate
planning there are unique planning ideas that can help you and your family
minimize estate taxes, increase retirement cash flow to you and your spouse and
to help a worthy charity (or charities) that you care about, as well as
Heres just one very simple idea out of many: One
sets up what is called a charitable remainder trust. This trust gives a future
donation of property or other assets (usually appreciated assets). The property
is given today but the charity does not have access to that until both you and
your spouse die.
Say it is an apartment building purchased for
$500,000 15 years ago and now worth $3,000,000. The charity receives the gift,
sells the property and guarantees you and your spouse a lifetime income. You
receive the income plus a current substantial tax deduction.
Whats the result? You and your spouse receive
lifetime income, a current large tax deduction and the property is no longer in
your estate or subject to estate taxes. So what about the children or
grandchildren? One can take some of the cash flow from the charity and by using
an Irrevocable Life Insurance Trust (ILIT) obtain
life insurance that replaces the value of the asset to the
children and passes estate and income tax free!
This is a very simplified description of many
varieities of this and other techniques where you, your family and charity can
benefit if you plan a gift.
Ask a qualified associate, in concert with legal
advice, to help crunch the numbers to show if such designs can be of benefit to
you. You can contact us for more information on charitable planning. Mark the
contact - "Questions about charitable planning" so we get it to the right
Written by by Richard Reich
Reich, writes articles on life insurance, whole life insurance, and term life
insurance for Life Insure.com, Life Insurance Direct, provider of life
insurance quotes and information. For more information, visit