Friday, October 01, 2010 Press Coverage of Estate Planning this Week (October 1, 2010)
Bob Carlson of Retirement Investing discusses issues surrounding probate avoidance, such as the disadvantages of probate in most states, but also why probate might be a good option for some assets, the differences between what constitutes your probate estate and your taxable estate, and why living trusts are often used to avoid probate. See Avoiding Probate – Or Not (Sept. 27, 2010).
Ashlea Ebeling of Forbes notes that the Applicable Federal Rate (AFR) used for various estate planning and family loans hit historically low rates in October. The AFR is used for Grantor Retained Annuity Trusts (GRAT), which allow you to pass assets to your children estate and gift tax free so long as the appreciation of the asset in the GRAT exceeds the AFR rate. October’s AFR is 2.0 percent for GRAT purposes, and as low as 0.41 percent for family loans of three years or less. See October Opportunity for GRATs and Family Loans (Sept. 27, 2010). |