For instance the tax payer needs to make as many gifts to all heirs to their
estate throughout the years. That reduces the estate amount and tax liability in
the long run. I would compensate this with different trusts options and
charities. With the taxpayers having some income from investments and a
ranch. The use of establishing a grantor retained annuity trust could be
beneficial. GRATS are used when the estate has consistent incomes , where a
Grantor Unified Trust is used when the income is inconsistent. Both are good
ways to prolong the tax to the heirs by placing income producing assets in a
trust for a period of time. While in the trust the heir gets the income and when it
expires they receive the asset and income. This method can delay the tax for a
period of time although does not take decrease the taxable value fully from
trust. There is also different types of charity based trust. A Charitable
Remainder Trust for highly appreciated assets due to the fact they save and
avoid capital gains taxes and estate taxes. The main thing with all these options
is hire a professional to guide you through the whole process to insure the
correct options between, Charities, Trusts, Gifts. Proper and early planning
can make a tremendous difference when it is all said and done.
Gift Tax. Internal Revenue Service.(n.d). Retrived March 2, 2023
https://www.irs.gov/businesses/small-businesses-self-employed/gift-
tax#:~:text=The%20gift%20tax%20is%20a,of%20any%20type%20of%20pr
operty.
Mark Fonville.CFP(2022. (How To Avoid Estate Taxes With A Trust
https://www.covenantwealthadvisors.com/post/how-to-avoid-estate-taxes-
with-a-trust
