Estate Planning for High Wealth Estates

Wealthy estates draw more attention from the IRS and as the dollar value of an estate goes up so does the chance of an audit. Here are some tips for high wealth estate planning:

• Even if an estate falls below the exclusion amount, don’t forget to file an estate tax return to preserve portability for the surviving spouse.
• Remove appreciated assets from the estate with a charitable remainder trusts and family limited partnerships.
• Give careful consideration to the pros and cons of a family foundation versus a donor-advised trust, based on the individualized situation.
• Don’t forget about the annual individual gift exclusion, and the additional option of paying medical bills or tuition directly to the provider or school without incurring gift tax.

See Ingrid Case, Estate Tax Tips for Wealthy Clients, Financial Planning, Feb. 2, 2015.

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