Advanced Estate Planning

We commonly see clients with high-net worth estates and complicated family dynamics frequently require extra attention to the preservation and distribution of their assets. For these types of clients, our California estate planning lawyers at Botti & Morison Estate Planning Attorneys, Ltd. offer advanced estate planning. An advanced estate plan provides greater asset protection as it requires a multi-layered approach. In addition to a living trust and last will, you could benefit from a variety of advanced estate planning tools including:

  • Irrevocable Life Insurance Trusts – An advanced estate planning vehicle intended to transfer substantial proceeds from a life insurance policy to the trustor’s beneficiaries free from federal estate taxes.
  • Qualified Personal Residence Trusts – This is a special type of trust designed to remove the value of the trustor’s primary residence or a second home from their taxable estate.
  • Family Limited Partnership (FLP) / Limited Liability Company – Family Limited Partnerships and Limited Liability Companies are common estate planning tools that provide added creditor protection and reduce taxes on the overall estate.
  • Charitable Remainder Trusts – A type of specialized trust for those who wish to give to charitable or philanthropic organizations once they pass. It also generates lifetime income for specified beneficiaries and immediate tax benefits.
  • Irrevocable Trusts – The purpose of this tool is to effectively transfer ownership and complete control of all properties within the trust to the specified beneficiaries. An irrevocable trust cannot be changed or terminated unless the trustees, trustor, and named beneficiaries unanimously agree. It provides added protection from creditors and can put a person in the position to qualify for Medi-Cal benefits by allowing them to transfer non-exempt assets to the trust.
  • Special Needs Trusts (both 3rd party and 1st party) – A type of special trust that holds title to property for the benefit of a child or adult with a disability without interfering with their eligibility for public benefits.
  • IRA Inheritance Trusts – Allows the account holder to transfer their IRA funds to the right beneficiaries upon death and permits beneficiaries to “stretch out” their taxable, required minimum distribution over their own life expectancies.
  • Crummey Trusts – With a Crummey Trust established, the trustor can pass assets free of both gift and estate taxes to specified beneficiaries. The trust also retains the option to place limitations on when the beneficiary can access money or property.
  • Intentionally Grantor Defective Trusts (IGDTs) for Asset Protection, Estate Tax Avoidance and Medi-Cal Planning – IGDTs can be incredibly useful to a person’s estate plan as it allows beneficiaries to inherit property at its market value at the time of the decedent’s death. The beneficiary does not have to pay estate taxes or taxes on any income the property may have generated while held in the trust.
  • Generation Skipping Trusts (Dynasty Trusts) – A long-term trust created with a sizeable amount of assets designed to benefit future generations of the decadent’s family. These types of trusts offer superior asset protection, will have no affect on government benefits, and will not be subject to estate taxes.
  • Grantor Retained Trusts – A type of irrevocable trust developed for the purpose of reducing estate, gift, and generation-skipping transfer taxes. With this trust, the grantor can receive back an annuity payment each year and the amount given is structured so the transfer produces little or no gift tax.
  • Installment Sales – The sale of a property where at least one payment is to be received after the close of the tax year in which the sale occurs. Instead of receiving the proceeds at the time of the sale, the seller will receive a series of payments over several years.
  • Self-Canceling Installment Notes (SCINs)—The “self-cancelling” feature of SCINs means if the original buyer dies during the term of the note, then the “buyers” (typically their loved ones) will not be obligated to provide further payments. They will also receive the entire asset free of any transfer taxes.
  • Private Annuities – In a private annuity transaction, the annuitant transfers property to an obligor in exchange for annuity payments. This is often used to transfer assets to a family member without being subject to gift or estate taxes.

Botti & Morison Estate Planning Attorneys, Ltd. provides advanced estate planning services for all Californians and has offices in the following counties Ventura County, San Luis Obispo County, Los Angeles County, Kern County, and Santa Barbara County. To speak to a qualified attorney, call Botti & Morison Estate Planning Attorneys, Ltd. or utilize the online contact form.