Taking Advantage of End-of-Year Planning Techniques

I recently blogged about the end of 2010 being a good time for people to make transfers to grandchildren due to the GST tax loophole. However, this approach isn’t for everyone, including those whose children need the money or those who can’t afford to pay the 35% gift tax on new gifts this year.

This approach is still beneficial to some families who wish to transfer more than $5 million to grandchildren. Those who want to take advantage of it must make an outright gift or fund a trust by December 31.

See Anne Tergesen, New Tax Law Offers Wealthy Families Options on Trusts, W.S.J., Dec. 21, 2010.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this to my attention.