Estate Enhancement Plan

A Case Study of Its Process and Benefits

William T. Kriesel, CPA/PFS, CFP, AEP

As financial advisors, CPAs are often asked to guide business owners on increasing their profits, cash flows, and—ultimately—the value of their business. As estate planning advisors, CPAs are also asked to counsel individuals on how to decrease the size of a taxable estate. The more successful individuals are in growing the value of their assets, specifically their closely held businesses, the more difficult it can be to reduce the estate for transfer-tax purposes. Advisors utilize several different planning techniques, such as sales to intentionally defective grantor trusts (IDGT); other types of trust planning; discounted giving; structuring of grantor-retained annuity trusts (GRAT); charitable planning, including private foundations; donor-advised funds; and charitable remainder and lead trusts. These techniques, and many others, normally result in either a freeze or reduction in the taxable estate, while still transferring assets to the desired heirs or charities.