2 pages required.
budget: 10$
You will submit a memo describing how you will incorporate trusts into
the estate plan you started in Milestone One. Include a quantitative
model (in Excel) explaining how the use of the trusts and the family
limited partnership can reduce the family’s estate tax over time. Show
how the transfer of ownership in the present via gifts or the
formation of trusts will ensure a greater appreciation in value of the
younger generation’s ownership interests in the family enterprise over
time. Conclude whether or not the strategy is worthwhile and is
ethically sound. Cite appropriate statutory authority, case law,
and/or AICPA Code of Conduct or ABA Model Rules of Professional
Conduct to support your conclusions.
Specifically, the following critical elements must be addressed:
I. Utilize intentionally defective grantor trusts
to accomplish long-term minimization of the client’s tax liability.
Consider the mechanics of these estate planning vehicles and the
appropriate authority to cite.
II. Tables and Calculations: Excel Documentation
A. Consider how the strategy maximizes the amount of transferred
wealth to the client’s children over time and explain the amount in an
Excel spreadsheet.
B. Given the income tax consequences, conclude whether or not the
strategy is worthwhile and is ethically sound. Consider justifying the
strategy in comparison to an alternative transaction.
Your paper must be submitted as a 2–3-page Microsoft Word document
with double spacing, 12-point Times New Roman font, one inch margins,
and at least three sources cited in APA format. Submission must
include an Excel spreadsheet explaining the amount of transferred
wealth over time.