Posts Categorized: Estate Tax Planning


IRS Seeks to Limit Valuation Discounts for Family-Controlled Entities: Proposed Section 2704 Regulations

By Drew Grey, CPA, Partner dgrey@srgcpas.com Many sophisticated estate planning techniques include gifts, sales, or other transfers to family members that utilize significant discounts on the value of the assets transferred. These discounts can range from 15 percent to 45 percent, or even higher. As a result, significant wealth can be transferred to the next … Read More »

August 10, 2016 Posted in Estate Tax Planning

Make the Gift And Keep It Too!

By Drew Grey, CPA, Partner dgrey@srgcpas.com We know that the per person gift tax exclusion, which is $5,120,000 in 2012, is scheduled to decrease to $1,000,000 on January 1, 2013.  We also know that the gift and estate tax rate, currently 35%, is scheduled to increase to 55% on January 1, 2013.  As a result, … Read More »

November 1, 2012 Posted in Estate Tax Planning, Tax

SELF-CANCELLING INSTALLMENT NOTES

By Drew Grey, CPA, Partner dgrey@srgcpas.com As discussed in previous blogs, all gift and estate tax planning involves the transfer of assets from parents to their heirs.  One principal challenge is to determine the technique to use to most effectively accomplish the transfer.  In that analysis a self-cancelling installment note (SCIN) will certainly be considered. … Read More »

October 20, 2012 Posted in Estate Tax Planning, Tax

PRIVATE ANNUITIES: ESTATE TAX MAGIC

By Drew Grey, CPA, Partner dgrey@srgcpas.com All estate tax planning involves moving assets from the parents to the children.  There are many ways to move the assets: the parents can give the assets; they can sell the assets; they can make a part-gift, part-sale.  The gift can be accomplished using an outright gift or a … Read More »

October 10, 2012 Posted in Estate Tax Planning, Tax

GRANTOR RETAINED ANNUITY TRUSTS

By Drew Grey, CPA, Partner dgrey@srgcpas.com A grantor retained annuity trust (GRAT) is a technique designed by Congress to help parents transfer assets to their heirs at a significantly reduced gift tax cost.  This is accomplished because the parents do not transfer the asset outright to the children.  Instead, the parents retain a stream of … Read More »

October 8, 2012 Posted in Estate Tax Planning, Tax

SALES TO GRANTOR TRUSTS

By Drew Grey, CPA, Partner dgrey@srgcpas.com In a previous blog we discussed how grantor trusts – which are ignored for income tax purposes – are powerful gift and estate tax planning tools.  The IRS unsuccessfully argued that they were gift tax loopholes.  Grantor trusts are so powerful that, combined with a promissory note, they are … Read More »

September 26, 2012 Posted in Estate Tax Planning, Tax

GRANTOR TRUSTS: GIFT TAX LOOPHOLES

By Drew Grey, CPA, Partner dgrey@srgcpas.com An irrevocable trust can be treated in at least three different ways for Federal income tax purposes.  A simple trust requires all the income to be distributed every year, in which case the beneficiary is taxed on the income.  A complex trust permits the trustee to accumulate or distribute … Read More »

September 17, 2012 Posted in Estate Tax Planning, Tax