Estate Tax Strategy for Appreciable Assets

There are things that you can do to potentially transfer assets at a tax discount if your estate is going to be exposed to the federal estate tax. This tax is applicable on transfers that exceed the amount of the federal estate tax exclusion. For the rest of this year, the exclusion is $5.43 million, but it is going up to $5.45 million next year after an inflation adjustment is applied. If you are married, you can use the unlimited marital deduction to transfer unlimited assets to your spouse tax-free, assuming you and your spouse are American citizens. The death tax can be applied on transfers to anyone else. One estate tax efficiency strategy that can be useful if you are in possession of highly appreciable assets is called the zeroed out GRAT strategy. The acronym stands for a grantor retained annuity trust. You fund the trust with these appreciable assets, and you name a beneficiary. The beneficiary would assume ownership of anything that may be left in the trust after the expirat


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