The article discusses the use of direct gifts, intra-family loans, and Grantor -retained annuity trusts (GRATs).
Direct Gifts - The annual exclusion amount in 2009 has been bumped up to $13,000. This means that one can give up to $13,000 to as many people as one wants gift tax-free. This is a particularly useful device now that stock prices are depressed.
Intra-family Loans< - The IRS sets rates of minimum interest that one must charge to loan money to a family member. However, these rates are typically far lower than market rates, so this can be a nice way to help a family member invest in a business venture or other asset. Additionally, portions of such loans can be forgiven using the annual exclusion amount.
Grantor Retained Annuity Trusts - These devices are useful for wealthy investors who own assets which they expect to appreciate highly. A well constructed GRAT can help these wealthy persons pass most of the appreciated value to heirs tax-free when the trust expires. Although conditi0ns for this planning technique are ideal given interest rates, many in the industry fear that Congress will reign in their popularity with new legislation.
ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.
CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775 - 9774
http://www.twininglaw.com
