Sopisticated Estate Planning

Grantor Retained Annuity Trusts can “leverage” your Applicable Credit and allow you to gift more at less tax cost.

How a Qualified Personal Residence Trust can save gift and estate taxes.


Using Family Limited Partnerships and Limited Liability Companies to facilitate estate planning.

Intentionally Defective Grantor Trusts
IDGTs used as an estate freezing device. You create a trust which is defective for income tax purposes (but not for estate and gift tax purposes) for the benefit of children and/or grandchildren. You sell assets (stock in a closely held or family business, real estate, marketable securities, limited partnership interests) to the trust in exchange for an installment note with interest. IDGT works best if the sold assets are subject to discounts in determining their fair market value and if it is expected that the sold assets will appreciate in value at a rate greater than the interest rate payable on the note.

Charitable Trusts
A charitable remainder unitrust or annuity trust can provide income and estate tax benefits, avoid capital gains tax and provide funds for research, helping the needy or other philanthropic goals.

Private Foundations
Private foundations can be a philanthropic legacy for wealthy donors.

To discuss these and other estate planning techniques, call Mitchell A. Port, a California tax attorney in Los Angeles, at (310) 559-5259.