Using Trusts to Take Advantage of Expiring Estate & Gift Tax Rates

According to CPA Bill Melton of Abbott, Stringham & Lynch, a Silicon Valley accounting firm, the most generous estate and gift tax provisions we have ever seen are set to expire at the end of December.  Melton explains that, while transferring assets directly to the recipient without restrictions may be the quickest and least costly in terms of legal or accounting fees and appropriate for some circumstances, “in the case of very large sums, gifts to minor children, or adults with special needs, transferring your assets into trusts may be the best tax strategy as well as a more appropriate alternative to direct gifting.”