Estate Planning

A frequent topic of the financial press is the ever-evolving federal estate tax system. Over a ten-year period, the marginal estate tax rate will decrease from 55% to 45% to 0% and rise again to 55%. Likewise, the amount a person can bequeath to heirs will go from $1 million to $3.5 million to, you guessed it, $1 million again.

Confusing? The tax professionals at Kreischer Miller can simplify the estate planning process. We begin by gaining an understanding of your overall financial goals. We accumulate a picture of your wealth today and project its future potential.

In an effort to transfer wealth to family members, we gain an understanding of your comfort with gifting to family members — in regards to both dollar amounts and control. We discuss the use of some standard trusts to transition wealth, but not total control of this wealth, to the next generation.

Transitioning wealth is one component of estate planning. Today, many sophisticated individuals often ponder more general issues in designing their overall plan, including:

• How much should I leave to my children and spouse?
• How much is too much? Will a large inheritance become a disincentive for children?
• How can I consider my grandchildren, some of whom may not yet be born?
• What about my university or favorite charity?
• How can I find a trustee who will understand and execute my wishes?

Once your goals are fully explored, we can implement a plan that utilizes any or all of the following tools:

• Annual gifting;
• Family limited partnerships;
• Grantor retained annuity trusts;
• Insurance trusts;
• Dynasty trusts;
• College savings plans;
• Charitable trusts and foundations.

The one certainty about the future of estate taxation is that it will be significantly different than it is today. To that end, we work with legal counsel in drafting wills and trusts in their most flexible format. We will help you develop a sound strategy that minimizes your taxes and meets your family’s overall goals.