Estate taxes are set to go through many changes within the next few years and that is not such good news for some. Families that are moderately wealthy, with about $4 to $15 million, are probably going to be hurt the most by those changes. This might be the last year where estate taxes are favorable, so if you fall within that millionaire range, you might want to start thinking about ways to take advantage of this year's estate tax rules.
Some financial advisors suggest creating family limited partnerships. Then they can create a gifting program after determining assets and liabilities. The non-liquid assets that qualify for the gifting program could then be gifted. However, the valuation of the gifts could become a problem, but you could possibly get around this by only gifting share interests in the limited partnership.
As always, setting up partnerships is a complicated process and you should always consult with a professional estate litigation Attorney to find out if that is the right course of action for you. There may be also be other ways to avoid higher taxes that are better suited for your estate.
*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.