Estate planning for the young and affluent – How to hedge your bets
Abstract: How can young, affluent people plan their estates when the tax landscape may look dramatically different 20, 30 or 40 years from now? Today, the current gift and estate tax exemption is high and the estate tax rate slightly higher than the income tax rate — but that could change in the future, requiring a shift in strategy. The answer for young people is to take a flexible approach that allows them to hedge their bets. This article explains how a carefully designed trust can achieve this purpose.