Readers in Nevada know that estate planning is very important if a person wishes to protect their assets and preserve them for their future heirs. What is less clear to many people in our state and elsewhere is how the laws surrounding estate planning may change as a result of the recent sequester in the national government. It could be that some commonly used estate planning tools are affected.
In a recent report that may be of interest to people in Nevada, an authority notes that some estate planning tools – such as certain types of trusts – may come under scrutiny during the sequester. This is because they can be used to move assets outside of an estate. In addition, some may see them as tools for the wealthy.
The trusts that are likely to be affected include the dynasty trusts, GRAT trusts and grantor trusts. Each of these tools is designed to limit the amount of estate tax that must be paid at the time of the death of their creator. The current limit is $5 million, adjusted for inflation from 2010. This amount has recently been made permanent as a result of the negotiations that took place to avoid the fiscal cliff earlier this year.
Estate planning is a process that may appear complicated to many people in Nevada. However, the good news for those folks is that there are many options that can be employed to ensure that their assets are protected for their heirs, while limiting any potential estate tax. To ensure that this is the case, a full review of the available options may be beneficial to those prepared to address these issues.
Source: forbes.com, “Estate Planning Moves BEFORE Sequestration Is Resolved,” Rob Clarfeld, March 8, 2013