Liquidating assets before medicaid speed dating duluth ga
Example: You have a highly appreciated stock portfolio worth M.
You might choose to retain those stocks in your estate so that on death the significant appreciate is eliminated by a basis step up.
Hopefully the following estate planning tidbits will make you the hit at the next campfire.
Have you reviewed with your professional advisers all the myriad of issues that might arise using these techniques?
For example, one technique is to give someone a general power of appointment over a trust.
That means they will be given the right to designate who will receive the assets of the trust. While layers of limitations can be placed on such powers they do bring increased layers of complexity.
If you borrow million using the highly appreciated stock as collateral, you can gift the M to a grantor trust.
You will grow the value of those assets outside your estate, you’ll pay the income tax on trust income reducing your estate, and your estate will be reduced by interest charges. What if the securities the trust invests in with the fund borrowed plummet in value?