Estate Tax Planning Strategies for Wealthy Clients

Outline

1. Current situation with federal estate tax
   1. For 2009, maximum tax rate is 45%, exemption $3.5 million
   2. For 2010, tax is to be fully repealed
   3. For 2011 and beyond, tax is to be restored at maximum rate of 55% and $1 million exemption
   4. Obama Administration favors permanent $3.5 million exemption; but, might it reconsider 2010 repeal?
2. Leveraging the higher exemptions for 2009 and 2010
   1. Create estate planning documents to get maximum exemption
   2. Possible asset realignments necessary
   3. Reexamine whether assets are in tax-deferred vehicles that prevent transferals
   4. Consider whether qualified plans can be left to a credit shelter or bypass trust
   5. Simplifying estate plans
   6. Should credit shelters and bypass trusts be eliminated?
   7. Review of fundamental options
      1. Intentional defective grantor trust, annual gifting, charitable planning, family loans, grantor trusts, etc.
3. Possible unintended consequences from increased exemptions
   1. Formula clauses in wills, designed for tax purposes
   2. Higher state death taxes upon first spouse’s death

Benefits

The panel will offer you valuable guidance in these and other relevant topics:

• Political outlook: What are the Administration's and Congress' current intentions for the estate tax? Could the estate tax return for 2010? What are the chances for an improved rate and exemption going forward?
• Exemption outlook: Planning alternatives to maximize the spousal exemptions now available in 2009 and 2010.
• Avoiding unintended consequences: Making necessary adjustments to Grantor Retained Annuity Trust (GRAT) planning, business succession, and other key issues.
• Staying current: Recent and proposed IRS guidance and regulations on valuation of larger estates, deduction limitations, return preparer penalties and other topics.