There is no estate (death) tax in 2010 but it is back in 2011 automatically if Congress enacts no changes or tax law this year. When estate taxes come back in 2011 next year for anyone with more than a $1 million dollar estate the 55% tax may catch many taxpayers by surprise.
The Grantor Retained Annuity Trust (“GRAT”) has been around for many years. A “zeroed out” GRAT can be used to transfer assets at no tax cost. Steve Harnett, Associate Director of Education for the American Academy of Estate Planning Attorneys does a great job in their blog explaining the strategy. You should check it out. Click Here to Read Full Article
Be sure to note that there is some concern Congress make take this planning opportunity away so call today if your estate is more than $1 million to see if you are a candidate for this or other strategies to reduce future taxes. You should not procrastinate on this!
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