Key Takeaways
- A $35 million estate faces approximately $3.5 million in federal and state estate taxes without planning — proper execution can reduce this to near zero.
- Locking in the current high GST exemption before potential 2026 sunset is the highest-priority action for estates above $14 million.
- Valuation discounts on LLC/FLP interests (25–30%) amplify the effective use of gift and GST exemptions.
- Rolling GRAT strategies transfer business appreciation at near-zero gift tax cost by resetting the Section 7520 hurdle rate.
- Total planning costs of $900,000 over 10 years save an estimated $5–7 million in transfer taxes — an 6–8x return on investment.
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Test Your Knowledge
1.Why is executing wealth transfers before the potential 2026 TCJA sunset a priority?
2.What is the purpose of the survivorship life insurance policy in the Reynolds plan?
3.How does a rolling GRAT strategy work?