California Estate Planning – An Overview

Northern Trust has a brochure entitled: “Estate Planning: Strategic Wealth Transfers During Life and at Death”. It contains an estate planning overview worth looking at. The topics include:

Fundamental Questions

Who Should Receive Your Assets?
Which Assets Should They Receive?
When and How Should You Transfer Wealth?

Basic Estate Planning Documents

Will Living Trust

Recruiting the Right Team

Who Should Draft Your Estate Plan?
Who Should be Your Executors and Trustees?
Who Should be the Guardian for Your Children?

Estate Settlement

Transferring Property After Death Receiving Benefits After Death The Probate Process

Determining Potential Estate Taxes

How Much is Your Estate Worth?
How the Federal Estate Tax System Works State Estate Tax Step-up or Step-down in Basis At Death


Strategy #1: Using The Marital Deduction Wisely

Plan to Use Both The Marital Deduction and Your Estate Tax Exemption Control Wealth With a QTIP Trust Give Your Spouse Control with General Power of Appointment Trust Create a Qualified Domestic Trusts

Strategy #2: Lifetime Wealth Transfers

Gift Tax Exclusion Uniform Transfers to Minors Act (UTMA) Accounts Qualified Trusts for Minors Crummey Trusts Irrevocable Life Insurance Trusts

Strategy #3: Using the Gift Tax Exemption Wisely

Grantor Retained Annuity Trust (GRAT)
Family Limited Partnerships (FLP)

Strategy #4: Consider Carryover Basis

General Rule: “Carryover Basis” for Gifts Don’t Transfer Assets With a Built-In Loss What about Step-Up At Death?

Strategy #5: Trusts That Benefit Both Individuals and Charity During .

Life or At Death Charitable Remainder Trust: Cash Flow and Flexibility Charitable Lead Trusts: Passing Wealth to Future Generations

Strategy #6: Private Foundations and Donor Advised Funds

Grant Making: Private Foundations Donor Advised Funds

Strategy #7: Focusing on the Family-Owned Business

Who Will Manage the Business?
Who Should Own Your Business?
How Will the IRS Value Your Company?

Strategy #8: Planning to Avoid Generation Skipping Transfer Tax

Allocating GST Exemption Tax Strategies

Strategy #9: Evaluating Your Need For Life Insurance

Is Lost Earning Power an Issue?
Is Liquidity an Issue?
Choose the Best Owner Consider an ILIT

Strategy #10: Understanding Community Property Issues

Remember, Marital Rights Are Expanded Plan Carefully When Using a Living Trust Community Property and Tax Cost


Where Do You Go From Here? No endorsement of Northern Trust or its agents is intended. So, call a qualified California estate planning attorney for help with your tax planning. Call Mitchell A. Port at (310) 559-5259.