{"id":2026,"date":"2023-03-30T14:32:44","date_gmt":"2023-03-30T14:32:44","guid":{"rendered":"https:\/\/www.gunderwealth.com\/?p=2026"},"modified":"2023-03-30T16:43:16","modified_gmt":"2023-03-30T16:43:16","slug":"fancy-estate-planning-concepts","status":"publish","type":"post","link":"https:\/\/www.gunderwealth.com\/fancy-estate-planning-concepts\/","title":{"rendered":"Fancy Estate Planning Concepts"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”Section” _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row admin_label=”Row” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/www.gunderwealth.com\/wp-content\/uploads\/2023\/03\/Untitled-design.png” alt=”fancy estate planning concepts” title_text=”fancy estate planning concepts” align=”center” force_fullwidth=”on” align_tablet=”center” align_phone=”” align_last_edited=”on|phone” _builder_version=”4.20.2″ max_height=”800px” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.20.2″ ul_line_height=”1.7em” header_line_height=”1.5em” header_3_line_height=”1.5em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Do you have an estate tax issue? Here are some fancy estate planning concepts broken down in plain English. But first, let’s start with the basics.<\/p>\n

What’s the current exemption?\u00a0<\/strong><\/h3>\n

The estate tax exemption will be HALVED in 2026<\/strong> due to the expiration of the 2017 Tax Cut and Jobs Act (barring any other additional Congressional legislation). The current exemption is $12.9M per person or $25.8M for couples. Those are considerable dollar amounts!<\/strong><\/p>\n

But when cut in half ($6M for individuals, $12M for couples), some may wonder if they might breach this threshold at some point during their lifetime. Some may unexpectedly cross this threshold overnight if they hang onto equity stock compensation or experience a liquidity event.<\/p>\n

So what’s the goal here?<\/strong><\/h3>\n
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  1. Move assets out of your taxable estate.<\/li>\n
  2. Retain access to those assets without jeopardizing #1.<\/li>\n<\/ol>\n

    Here are five estate planning concepts that may be worth your consideration.<\/p>\n

    ILIT – Irrevocable Life Insurance Trust<\/strong><\/h3>\n

    This is basically life insurance held in a trust. So why would you do this? Really for two reasons:<\/p>\n

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    1. It’s excluded from the taxable estate.<\/li>\n
    2. It allows you to “protect” the life insurance proceeds. It dictates how the proceeds are managed and distributed upon the insured’s death. This is particularly important in the following scenarios: the surviving spouse remarries, the beneficiaries lack prudent money management skills, the fruition of an impending lawsuit, or minor beneficiaries.<\/li>\n<\/ol>\n

      SLAT – Spousal Lifetime Access Trust<\/strong><\/h3>\n

      This design allows one spouse to create a trust for the other spouse and\/or kids and vice versa. It’s considered more flexible and robust than an ILIT but still irrevocable. It also:<\/p>\n