For example, one technique is to give someone a general power of appointment over a trust.That means they will be given the right to designate who will receive the assets of the trust. While layers of limitations can be placed on such powers they do bring increased layers of complexity.The latest salvo will be regulations negating discounts on FLPs/LLCs (perhaps only on those not operating an active business) what should you be doing? If discounts are nixed and your estate is under the federal exemption amount, you might do a happy jig! Because the IRS will have done most wealthy, but not ultra-wealthy, taxpayers a favor.
■ DAPTs: With the general demise of the estate tax for most wealthy clients asset protection planning has assumed a more important role in planning.If decanting makes sense, pay careful attention to the statutory requirements under which the decanting is achieved. Planning for the inevitable of aging is emotionally difficult to face.One common restriction on decanting is not adding new beneficiaries, as confirmed in a recent case. Practical steps such as consolidating assets, organizing and computerizing records, involving children or others who will serve in fiduciary capacities so that they are aware of their roles, and more, is essential.Most folks seem to feel that once the documents are signed their good to go. If you meet your wealth manager semi-annually, at least one of those meetings should have your CPA and attorney in attendance.Few plans will have much chance of success without periodic professional involvement.
Another common basis maximizing technique is to borrow money on appreciated assets and gift the borrowed funds away.