Eric is experienced in the design and execution of estate planning vehicles, including wills, insurance trusts, and sophisticated gifting techniques. He develops complex estate plans personalized for each client, and he provides insightful counseling regarding effective minimization of estate, gift, generation-skipping transfer, and income taxes. He also advises private foundations and public charities on operations and management.
With a diverse client base, Eric oversees a mix of intricate needs relating to taxes, trusts, and estates. Clients range from corporate executives and self-employed professionals to families with inherited wealth and the beneficiaries of estates and trusts. Eric has substantial knowledge in estate and trust administration in both New York and New Jersey.
Business Tax | Business Tax Counseling & Structuring | Corporate | Fiduciary Counseling & Litigation | Tax | Trusts & Estates
EJ2 Communications, Inc. (d/b/a Flashpoint) Series C Preferred Stock Financing (and all of its prior venture capital financings)
Estate planning attorneys assist their clients by recommending the most appropriate ways to achieve wealth transfer goals. A key approach in our planning arsenal is the use of trusts. Although we often think of trusts as a method to minimize transfer taxes, the use of trusts predates our modern estate tax system, such as it is, or will be or may be, given the uncertainty of recent Congressional inaction. Regardless of what happens to the estate tax, trusts provide a powerful and flexible way to address a myriad of nontax concerns. Given the unsettled state of affairs, planners must be especially sensitive to the variety of nontax related situations in which the use of trusts can provide real value to our clients.
GRATs are hot. Given today’s low interest rates and volatile markets, they afford tremendous opportunities for shifting asset appreciation free of gift and estate taxes. GRATs are seemingly noncontroversial. The GRAT technique is blessed by statute, regulations and case law. The basic GRAT format is simple: (i) a grantor contributes an asset with meaningful appreciation potential; (ii) the grantor receives a fixed payment (typically a percentage of the asset’s initial fair market value, computed so that there is virtually no present gift) over a set term; and (iii) the designated remainder beneficiaries receive any value remaining at the end of the term — gift tax free. However, the GRAT format is tightly regulated, so proper care in drafting, funding, and ongoing administration is essential to the success of any GRAT. This article covers several of the most important considerations in designing and implementing GRATs.
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