The following are red flags:
- Formula Clauses in Wills. While common, it is suggested you use specific numbers in examples to reflect your intent.
- Grantor Retained Annuity Trust (GRAT). This is a strategy designed to avoid or minimize the gift tax that applies to a lifetime transfers of more than $1 million. There is talk of changing the terms of this annuity, which is based on section 7520 of the I.R.S. Code.
- Family Limited Partnerships are under attack and Congress may close this loop-hole very soon
- About half the states, including NY, NJ & CT, impose an estate tax and their exemption is smaller than the federal one ($3.5 M). In New York, for example, the exemption is only $ 1 M.
Miscellaneous
Money in IRAs or from life insurance policies are not covered in wills. instead, the money goes to the people designated in the beneficiary forms. It is still a good idea to have a copy of the designation form on file with your will and have your lawyer coordinate it with the rest of your estate plans.
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