Planning that Protects Everything you Own and Everyone you Love.

Estate Tax Planning in Idaho


Helping Families and Individuals throughout Boise, Meridian and Nampa, Idaho

Historically speaking, the federal estate tax is an excise tax levied on the transfer of a person's assets after death. In actuality, it is neither a death tax nor an inheritance tax, but more accurately a transfer tax. There are three distinct aspects to federal estate taxes that comprise what is called the Unified Transfer Tax: Estate Taxes, Gift Taxes, and Generation-Skipping Transfer Taxes. Legal planning to avoid or minimize federal estate taxes is both a prudent and an important aspect of comprehensive estate planning.

Irrevocable Life Insurance Trust

Life insurance is a unique asset in that it serves numerous diverse functions in a tax-favored environment. Life insurance proceeds are received income tax free and, if properly owned by an Irrevocable Life Insurance Trust, life insurance proceeds can also be received free of estate tax.

An Irrevocable Life Insurance Trust (ILIT) is one of the most popular wealth planning devices. It is a trust designed to own a life insurance policy, usually on the lives of you and your spouse. You gift funds to the trust periodically and the trustee uses the funds to pay premiums on the life insurance policy. The trust is designed to produce benefits for your family.

o Make current gifts to family members.
o Accumulate assets outside the client's taxable estate.
o Protect assets from claims of creditors.
o Avoid income tax on the accumulation of funds.
o Avoid estate tax upon the distribution of funds to the family.
o Create a source of liquidity to cover estate taxes or expenses.
o Replace assets that may have been given to charity.
 

Dynasty Trusts

Imagine structuring a gift in such a way that it provides for generations of benefits to your descendants. Imagine creating a plan that ensures that every one of your heirs will always have the money to get a proper education, start a business, or pursue their dream.

These are the goals - and the reality - of dynasty trust planning. Under the laws of some states, you can make sure that whatever money or other property you leave behind will remain in trust and available for the use and enjoyment of generations of your heirs.