Tansey Estate Planning

Protecting You and Your Loved Ones

The Underlying Advanced Estate Principles for Advanced Estate Planning Techniques

An Irrevocable Life Insurance Trust (ILIT) transfers the following Non-Taxable Assets to Taxable Beneficiaries: Properly Structured Life Insurance; the Annual Gift Exclusion; and the Lifetime Gift Tax Exclusion.

A Grantor Retained Annuity Trust (GRAT) transfers Post-Transaction Appreciation to Taxable Beneficiaries. A GRAT is an Estate Freeze that Leverages the growth of GRAT assets that is greater than the required Annuity Payments.

A Sale to an Intentional Grantor Trust transfers the following Non-Taxable Assets to the Non-Taxable Beneficiaries: Responsibipty of others to Pay Income Tax on the transferred Property and Post-Transaction Appreciation. The Sale to a Grantor Trust is an Estate Freeze that Leverages the growth of Grantor Trust’s assets that is greater than the required note payments.

A Charitable Lead Trust (CLT) transfers Post-Transaction Appreciation to Taxable Beneficiaries. A CLT is an Estate Freeze that Leverages the growth of CLT assets that is greater than the required charitable payments during the Income Period.

A Charitable Remainder Trust (CRT) transfers Taxable Assets to Non-Charitable Beneficiaries. The CRT can avoid capital gains income tax. It also is a Freeze Transaction where the non-charitable beneficiary during the Income Period can share in the Post-Transaction Appreciation of the trust’s assets.

A Gifting Trust transfers the following Non-Taxable Assets to Taxable Beneficiaries: the Annual Gift Exclusion, the Lifetime Gift Tax Exclusion; and Post-Transaction Appreciation.

A Health Education Exclusion Trust (HEET) transfers the following Non-Taxable Assets to Taxable Beneficiaries: Education Medical Exception; the Annual Gift Exclusion; and the Lifetime Gift Tax Exclusion.

A Qualified Personal Residence Trust (QPRT) transfers Post-Transaction Appreciation to Taxable Beneficiaries. A QPRT is an Estate Freeze that transfers the QPRT’s residence’s growth to the Remainder Beneficiary.