4 Estate Planning Techniques During Covid

Estate planning, like most other facets of daily living, has been affected by the pandemic. But the change is for good with the right estate planning strategies. Here are four unique and helpful techniques for you to consider during the pandemic.

  1. Annual Gift Tax Exclusions

During the pandemic, many assets are at an all-time low. The strategy you can use here is passing on these assets to your beneficiary with the lowest taxes possible. When the value appreciates, the beneficiary can make the most of these assets.

  • Charitable Lead Annuity Trusts (CLATs)

There is one way you can help your beneficiary while supporting a good cause at the same time. The Charitable Lead Annuity Trusts implies little to no tax and provide routine distributions to any designated charity. In the end, the remaining assets are sent to beneficiaries.

  • Grantor Retained Annuity Trusts (GRATs)

The Granter Retained Annuity Trusts do not imply any gift taxes. Apart from that, they usually hold assets whose value increases over time.

If you transfer your assets to these trusts, you will get an annuity over a certain period. Other than that, anything remaining in the trust above the 7520 rate is sent to the beneficiary.

  • Inflammatory Loans

Another helpful strategy to help you with estate planning during the covid is to refinance your existing intrafamily loan. Here is why.

Interest rates are at the current all-time low. If the interest rate later appreciates, the excess amount beyond the current rate will most likely pass tax-free. So, it is time to utilize the opportunity.

If you are thinking of implementing these estate planning techniques and want further information, contact us right away. At Keystone Asset Protection and Estate Planning, we would be more than delighted to provide our services so that you can protect your assets and preserve your hard work.