THE SUCCESSFUL INVESTOR

Client, widowed at age 94 by the accidental death of her 95 year old husband had an estate of over $15MM, all in marketable securities. The couple had a revocable living trust in place, but had done no other planning.

Once her husband’s credit shelter trust was funded, the remaining estate was held in her revocable living trust, exposing her to estate tax of $8.5MM.

We recommended 2 Family Limited Partnerships to hold a substantial portion of the investment securities; a Charitable Lead Annuity Trust to benefit her 67 year-old son; a Charitable Lead Unitrust to benefit other family members (nieces, nephews, cousins); a testamentary Charitable Lead Annuity Trust; and a family foundation. In this manner we were able to transfer nearly all of her estate to her son and other beneficiaries within 7 years, while she retained sufficient assets to provide for her care, at a gift tax cost of $1M. At her death, her estate tax exposure will be $0.