There are many people that are going to want to find ways to protect their estates from capital gains taxes. Most Americans will not have to worry about federal estate taxes because of the very high exemption, but long-term and short-term capital gains taxes is still something people need to plan for. This article discusses some of the best ways that people can plan around capital gains taxes to try to lower them. It is important to understand the tax rules for gift giving. A person is going to want to consider undoing a trust and up-streaming a gift. A couple should think about using a special kind of trust known as a Joint-exempt step-up Trust (JEST) for highly-appreciated assets. It is also important to take advantage of the home sale tax exclusion, and use the 1031 exchange for investments in real-estate and artwork.
See John O. McManus, 5 ways to protect your estate from capital gains taxes, Market Watch, December 25, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
