Even though the federal estate tax is affecting a smaller percentage of people every year, those with larger amounts of assets are more likely to suffer the ill effects of this particular fee. New federal estate tax rules protect individuals estates that are valued at $11.58 million or less, and couples’ estates that are valued at less than $23.16 million. However, when estates passed those threshold, the estate tax rises to an overwhelming 40 percent. Now, a new type of legal protection has become available for those with large estates, allowing for additional shielding from the massive 40 percent tax.
This new estate administration tool is known as the grantor retained annuity trust. This particular [..]