Estate Planning
Common Estate Planning Techniques and Documents
It is possible for the value of the entities which receive the management fee and the incentive fee for new hedge funds to completely escape estate taxes if the ownership of these entities is properly structured. The income from these entities can actually be used to lower estate tax values instead of increase them. This summary is designed to explain some of the more common estate planning techniques.
In determining the size of an estate for estate tax purposes, one must consider life insurance proceeds, employee plan benefits, IRAs, and the possibility that you or your spouse may inherit property in the future. Every estate where there may be assets in excess of $3.5 million dollar exemption amount should be planned to legally avoid unnecessary estate taxes, which will be imposed at varying rates, depending upon what state the decedent lives in, but easily could be at 50% rates or higher above the exemption amount.