Four Estate Planning Trends

Here are four current estate-planning trends caused by recent developments:

1. Increased favor and use of self-settled trusts: These trusts are allowed in 15 states and the current  tax exemptions for gift and generation-skipping transfer at $5.34 million is making these a popular choice for asset protection.
2. Seeking favorable states for asset protection for discretionary trusts: After a recent Florida case that protects trustees from being forced to use their discretion to make disbursements, the search is on for a similar solution for third-party discretionary trusts.
3. Rising State Income Taxes Changing Estate Planning Considerations: With many states’ income tax rates increasing, the interest in private placement life insurance and trusts creation in states with lower tax is on the rise as well.
4. The creation of foreign grantor trusts by grantors without ties to the U.S.: The creation of trusts by foreign grantors that do have property or family in the U.S. is a new and increasing trend.

See Al W. King III, What’s Trending in the Estate-Planning World, Wealth Management, July 24, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.