Advanced Estate Tax Planning Strategies

THE FINANCIAL COMMUTE

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Planner & Estate Attorney Brian Standing to discuss advanced estate tax planning strategies.

Here are some key takeaways from their conversation:

- Estate tax laws are set to sunset in the next year and a half, potentially reducing the exemption amount from over $13 million to $7 million per person.

- High net worth individuals with estates over $26 million (married) or $13 million (single) should consider advanced estate tax planning to avoid higher taxes.

- Irrevocable Life Insurance Trusts (ILIT) help create liquidity to pay estate taxes without forcing the sale of assets. This trust owns the insurance policy to avoid taxation on the proceeds.

- Spousal Lifetime Access Trusts (SLAT) allow assets to be given to a spouse, maintaining indirect access to income while reducing estate taxes. This strategy has risks, such as the potential for divorce.

- Charitable Remainder Trusts allow individuals to donate assets to a charity in the future while retaining income from those assets during their lifetime.

- Family Limited Partnerships (FLP) help reduce estate tax liability by discounting the value of restricted or non-controlling ownership interests in assets like real estate or businesses.

- Brian advises listeners to organize their assets, income, and future needs to facilitate effective estate tax planning before the law changes in 2026.