- Bring a list of assets to your advisors. Coordinate with attorneys, accountants & financial advisors. High growth assets should be considered so they grow outside your estate.
- Determine the type of trust you wish to use for gifting. E.g., a generation skipping Dynasty Trust can be exempt from estate taxes for multiple generations.
- Determine who would be a willing, competent and legal trustee for the trust.
- If gifting private shares, consult with your corporate attorneys to make sure any transfers of shares are not in violation of applicable Operating Agreements, assignment documents are properly prepared and saved, and any necessary amendments to operating agreements are executed.
- Make sure your accountant is advised of your planning to keep track of your lifetime exemption, keep track of the basis in assets, proper valuations and discounts are documented.
- Advise your insurance agents of intended transfers of any insured assets to make sure ownership changes are recorded and coverage is maintained.
- Prepare a checklist for the trustee and/or beneficiaries upon your death.
- Consider educating the beneficiaries on the purpose and mechanics of the trust.
- Determine who the best person to take over your roles, e.g., are you running a company, who reports to you, etc.
- If you form new companies, consider setting up shares in the trust immediately so the value is miniscule.
- Store all documents on a computer that is backed up to the cloud.
- Your account should file both a gift tax return and a GST (generation skipping trust) return. This will start the statue to limitations.
- Make sure your advisors are updating you on any changes to the law that impact your estate planning.
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