The instability of the market can create estate planning opportunities. Roth conversions are best to do when the market is down because it will reduce the up-front tax hit. If you have already made the conversion, you can still re-characterize it and then reconvert it. Gifts to intentionally defective grantor trusts are also better to make when values are down so that future gains will not be within your estate. You can immunize grantor retained annuity trusts so that appreciation is transferred to beneficiaries. Lastly, low interest rates can make wealth transfer strategies more effective, so you should take advantage of wealth transfer strategies while interest rates are low.
See Gregory D. Singer, Lemons to Lemonade, T&E Magazine, Aug. 31, 2011.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
