Estate Planning is Alive and Well!

Posted by Bob Burton on Mon, Aug 10, 2009 @ 10:30 AM

During the final morning session at the AALU meeting in May, Larry Brody and Steve Leimberg confirmed what many other leading commentators have been saying:

NOW IS THE PERFECT TIME TO BE DOING INTELLIGENT ESTATE PLANNING.

While this may seem counterintuitive in light of   (a) the increase in the estate tax exemption from $2,000,000 per person up to $3,500,000 per person as of 1/1/09, and (b) all of the uncertainties people are experiencing due to current economic conditions, for those estate owners whose estates will still be subject to substantial estate taxes, there are powerful reasons why this is the ideal time to be doing intelligent estate planning:

1. With significantly decreased asset values, a much larger proportion of one’s estate can be shifted out of the taxable estate without incurring any gift or other tax consequences.

2. With interest rates at historically low levels, many powerful estate planning tools and techniques, such as GRATs, Installment Sales to Grantor Trusts, Private Financing of Life Insurance in Grantor Trusts, and certain Philanthropic techniques, are much more effective in transferring property out of the taxable estate than when interest rates are higher.

3. All of the common planning techniques that result in significant valuation discounts for transfer tax purposes, such as discounts for minority interests and lack of marketability in connection with Family Limited Partnerships and Limited Liability Companies, are still available, but may well be curtailed under proposed estate tax reform legislation.

Fortunately, we here at Provada, with our expertise, experience, and available software programs, are in a perfect position to help you with all aspects of your estate planning cases (except, of course, for the actual preparation of legal documents). We also have contacts with top-level estate planning attorneys and valuation experts all around the country that we can refer to you and your clients.

Estate planning cases are large cases. Don’t let others corner this lucrative market. Start the ball rolling by calling on the wealthy estate owners and successful business men and women in your area.