I do not have an answer to this question, but it really doesn’t matter. With 2020 right around the corner, it is not too early to act if there is flexibility built into your client’s estate plan. There is much discussion about what might happen if the Democratic Party wins the presidential election in 2020, but I will bet just about anything that if they do, this “gift” will become the subject of much debate and the exemption may be reduced well in advance of the current sunset date of January 1, 2026. [(Click here for more information on the history of the Federal Gift and Estate Tax Exemptions from 1997 through 2019 or here for a more in-depth history dating back to 1924 from the Commerce Clearing House (CCH), A Historical Look at Estate and Gift Tax Rates). The important thing to note is how vulnerable the Federal Gift and Estate Tax Exemptions are to the economic and political cycles in the United States.]
Let me quantify this for you.
Option 2 – Leverage Trust Assets with Survivorship (2nd-to-Die) Life Insurance
Now for the explanation of why this should be done now. The younger and healthier your clients are, the more attractive the insurance solution will be. Don’t wait until a client has been diagnosed with diabetes, cancer or a heart condition.
Option 2.1 – Leverage Trust Assets with Survivorship (2nd-to-Die) Life Insurance with Spousal Access Provisions
Option 3 – Gift or Lend Assets and Use Premium Financing
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