Save Estate Taxes

Limited partnership interests, which are transferred by gift to children or other family members, will not be included in your estate for estate tax purposes. A small percentage could be transferred each year which would not be subject to gift tax under the annual exclusion of $10,000 per donee. Greater value, up the exemption amount, could be transferred for additional savings. The amount of the gift plus appreciation of the underlying assets would escape estate taxes. An estate of $2 million can grow to $15 million or $16 million-invested at 7 percent per year, for someone in their early or late 40s. Potential estate taxes of $8 million can be avoided-with no inconvenience or loss of control. Under current law, the value of the interests transferred will be discounted in value to account for the lack of marketability and control. Significant estate tax savings can be generated by taking advantage of this technique.