Question

Discuss at least one of the techniques that would help to minimize a client’s estate/gift/GST tax.

Answer 1

One of the technique to reduce a client's estate tax is by making charitable donations through the estate i.e. giving away portion of the estate as a charity. Charitable donations through a trust either through charitable lead trusts or charitable remainder trusts. In a charitable lead trust the estate is passed on to the beneficiary upon the death of the individual. In a charitable remainder trust, an individual can make money of the property and once he passes away the balance is given to charity. Both of the ways are eligible for a tax deduction.