Estate Tax Planning

Without prudent estate tax planning a substantial portion of your estate may go to the IRS. To maximize the amount you leave your family and other loved ones, it is essential to implement some well thought out estate planning strategies.

Estate and income tax savings may be obtained when using one or more of the following trusts or strategies:

• Revocable Living Trusts
• Limited Family Partnerships
• Irrevocable Life Insurance Trusts
• Charitable Remainder Trusts
• Dynasty Trusts
• Private Charitable Foundations
• Gift Tax Exclusion Programs, including intra-family transfers of limited partnership interests

Capital Gain By-Pass Trusts

There are several forms of capital gain by-pass trusts. These include Lead Trusts and Remainder Trusts. There are also two types of Remainder Trusts, the Annuity Trust and the Unitrust. This topic will address the enormous benefits associated with the Unitrust. One of the principal differences is that this type of trust may accept additional contributions of assets subsequent to the initial wealth transfer (which is described below).

Charitable Remainder Trusts

Brought into existence by an Act of government in 1969, the Charitable Remainder Trust is an excellent financial planning instrument. If assets have significantly increased in value, it is often beneficial to place these assets into a Charitable Remainder Trust before a decision is made to sell these assets.

Benefits

• Avoid long term capital gains tax on the sale of appreciated investments or other assets (including family owned businesses).
• Contribute assets to benefit your favorite charity and receive a current tax deduction for doing so.
• Use a Wealth Replacement Trust which owns life insurance policies to give loved ones their inheritance free of estate and other taxes.
• Convert investments which pay little or no dividend income into high yield assets and assure lifetime income distributions.
• Asset protect trust principal from claims of future creditors and with the use of an offshore Charitable Remainder Trust, asset protect the trust's income stream.
• Reduce or eliminate estate taxes.
• Achieve tax deferred accumulation of trust principal and undistributed trust income; allowing for substantial retirement income without the problems associated with qualified retirement plans.

As the formation of the CRT and subsequent transfers requires expert assistance by a trained professional, be sure to contact Infinity Capital Management for help.

Infinity Capital Management
1050 E. Flamingo Rd. Suite E227
Las Vegas, Nevada 89119, USA
Email: info@infinitycapital.com
Phone: USA-702-228-3499
Fax: USA-702-383-5079