Family Wealth Transfers Article by Bernstein

I found Keeping It in the Family: Planning for Efficient Wealth Transfer, written by the investment firm Bernstein, to be an excellent guide on the benefits of wealth transfer. Of particular focus in the article is:

1. The Power of Gifting. The article reminds the reader that the use of the $1,000,000 Lifetime Gift Tax Exclusion and the $12,000 Annual Exclusion are powerful tools that should be employed in order to transfer wealth. These tools are so effective, and yet most folks never take advantage of them properly.
2. The Grantor Retained Annuity Trust (GRAT). The GRAT is an interesting trust that allows a great deal of wealth to be transferred free of estate and gift tax.
3. The Intentionally Defective Grantor Trust (IDGT). This trust acts as an alternative to a GRAT. I use this more frequently in my practice than GRATs, since I think the administration is much easier on the client (among other reasons).
4. The Charitable Lead Trust (CLT). For Charitably minded client, the CLT, whether used during one's lifetime or at death, is an excellent way to both reduce the overall estate tax burden, while at the same time passing assets efficiently to the next generation.

I hope you enjoy the article!