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2 Proven Strategies for Lowering Estate Taxes


Any estate planning attorney can tell you that there are many ways to lower your estate taxes. Some are very effective for certain people while for others they are not.

Here are two popular methods for lowering estate taxes that might work well for your estate:

1. Creating a Private Annuity. This is a great way to avoid taxation on an estate, and if this applies to you, you’ll definitely want to ask your asset protection lawyer about

A private annuity allows the grantor of an estate (through his or her trustee) to sell any asset held within the estate to a son, daughter, or other family member of the next generation.

There is something called an “unsecured promise to pay” that applies to the member of the younger generation who purchases the asset (this basically means that there don’t really need to be payments, and unless otherwise stipulated, they can be in pretty much any amount).

2. Setting up an FLP (Family Limited Partnership). This is a tool in the estate planning tool belt that is often underutilized. An FLP allows for the grantor (or the trustee under the guidance of the grantor) to transfer the ownership of any family business.

This business may be a mom and pop partnership or a larger S-Corp. The FLP will transfer the business into the name(s) of the child(ren) and in this sense it will protect any assets within the estate from creditors and undue taxation.

FLPs are very flexible and allow for the estate to be taxed at the tax rate of the children, which clearly (excepto in wild anomalies) is far lower.

If you would like more information about creating or updating your estate plan, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Contact us today at (727) 537-6818 or and mention this article.