THE CHILDLESS WIDOW

Client, an 87 year-old widow, owned a 300 acre ranch that had been in the family for 3 generations plus additional assets for a total estate of $4.5MM, with an estate tax exposure of over $2MM. She had done no prior estate planning.

We recommended she implement a fully funded revocable living trust, a family limited partnership and a charitable lead annuity trust. She was able to transfer the bulk of her estate, including the family ranch, to her favorite nephew immediately at no tax cost, while holding sufficient assets to care for herself for the rest of her life. Her estate tax exposure is $500K, but will drop to $0 by 2004.