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Irvine, CA Estate Planning Blog

Wednesday, July 1, 2015

A Perfect Storm

We’ve been talking about a “perfect storm” for quite a while now– low asset values combined with historically low interest rates and the $5.43 million gift tax exemption make this an unusually good time to implement certain estate planning strategies. And some in the investment advisor community apparently agree.

In “A 'perfect storm' for estate planning” Investment News hails this as the time to take advantage of this confluence of factors, encouraging advisors to determine clients’ planning objectives and then “stick with the basics” and make annual exclusion ($14,000 per person gifts).

Beyond the basics, this article suggests that investment advisors and their clients consider:

Grantor Retained Annuity Trusts – for transfers of highly appreciating assets

Generation-Skipping Transfer Trusts – to avoid the generation-skipping transfer tax for potentially multiple generations

Qualified Personal Residence Trusts – for transfers of personal residences

We continue to encourage investment advisors to consider these and other estate planning options for their clients. While we can’t say with certainty what the future holds, asset values will eventually rebound, interest rates can’t remain at historic lows forever, and the 2015 Treasury Greenbook recommends that the estate tax exemption will be lowered in 2018 to $3.5 million dollars. Now is the time to take advantage of the perfect storm for estate planning.


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Law Offices Of Michael J. Wittick, A Professional Law Corporation is located in Irvine, CA and serves clients with estate and wealth preservation matters throughout Irvine, Lake Forest, Laguna Woods, Laguna Hills, Foothill Ranch, Tustin, Aliso Viejo and the surrounding areas.



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