Best Plan for Older Generation to Preserve Estates and Limit Taxation

Discussion Questions
Student:
Professor:
Course title:
Date:
Discussion Questions
In my opinion, the best possible plan that the older generation can use in preserving their estates and limiting taxation with the aim of passing the value to their children is to remove assets from the estate before they die; they can spend some and actually enjoy it. There are several strategies that the senior citizen can use in removing assets from the estate including the following: (i) Grantor Retained Annuity Trust - this will remove income-producing assets from estate at discounted value (Neighbor, 2010). (ii) Qualified Personal Resident Trust - this will remove the home now from estate at discounted value. The senior citizen will transfer his/her home to a trust for a specified period, typically 10 years to 15 years, and throughout this time, the senior citizen will continue living there. The home transfer to the children - the trust beneficiaries - the moment the term of the trust ends (USBank, 2013). (iii) Transferring his or her Life Insurance policies to Irrevocable Life...