Kelleher & Buckley, LLC
March, 2014
I Estate Planning I Estate and Trust Administration I Personal Injury I Real Estate I
I Business Representation I Guardianship I Asset Protection I Tax Law I Litigation I
ANDREW J. KELLEHER, J.D., CPA, LL.M.
DAVID P. BUCKLEY, JR., J.D., C.P.A.
.
MICHAELP.MCELROY, J.D.
MARTHAE. MCHUGH, J.D.
VASILI D. RUSSIS, J.D., C.P.A.
LINDAS.FINE, J.D.
ROBERT A. HOLLAND, J.D., C.P.A.
DEANNAL. AGUINAGA, J.D.
MICHAEL GNESIN, J.D.
JOSEPHP.HUDETZ, J.D.
GUY R. KELLER, II,J.D.
EDWARDP.MCCAULEY, J.D.
SAMUELJ.H.WEYERS, J.D.
OFCOUNSEL:
ROBIN R.KELLEHER, J.D.
HON.HENRY "SKIP" TONIGAN, RET.
Why move to Florida? Avoid
both Federal and Illinois State
Estate Taxes with a:
"Spousal Access Gift Trust"
Harvest the $5.34M 2014 Gift Tax
Exemption During Life to Shift Future
Appreciation and Save Transfer Taxes
Email us
at: [email protected]
Spousal Access Gift Trust
A common goal of estate tax planning is to remove future asset appreciation from a
client's taxable estate by way of gifting. One gifting technique used to accomplish this
goal is the Spousal Access Gift Trust. Such trusts can be flexibly designed to benefit and
protect any one or more of the donor's spouse, children, and grandchildren from estate
taxes, generation-skipping transfer taxation, personal spending habits, mental disability,
creditors, divorces, etc.
With proper planning there is no transfer tax need for most married taxpayers with taxable
estates under $10.68M to move out of Illinois to Florida (or other states which do not have
an estate tax) to attain solid estate tax planning results. During 2014, Spousal Access Gift
Trust planning allows a donor spouse to make lifetime in-trust gifts to benefit the donee
spouse of up to $5.34M, without paying either federal or Illinois gift tax, and remove any
future appreciation associated with the gifted assets from being subject to federal and
Illinois estate tax upon death. A great result. The typical Spousal Access Gift
Trust commonly names the donee spouse as both a trustee and the primary beneficiary,
with the children as secondary beneficiaries. So, subject to certain limitations, the donee
spouse, as both a trustee and the primary beneficiary, may maintain significant control
and access to the protected in-trust gifted assets. Provisions may also allow the donee
spouse to benefit the donor spouse if the donee spouse predeceases the donor spouse.
Although Spousal Access Gift Trusts can be used with most assets, such planning can be
leveraged when used in conjunction with proper life insurance planning, family limited
liability company, S-Corporation planning and provide further economic benefits.
Furthermore, Spousal Access Gift Trusts can provide families with enhanced asset
protection.
In summary, for clients who do not desire to move to Florida (or other states without an
estate tax), Spousal Access Gift Trusts can be designed to avoid both Federal and Illinois
estate taxes as well as fully utilize the generation-skipping transfer tax laws to provide
dynasty trust planning thereby avoiding transfer taxes over the generations.
For more information on how we can assist you, please contact us at 847-382-9130.
Advertising Materials
Kelleher & Buckley, LLC provides competitive legal, tax, advisory and business services,
continuously striving to exceed our clients' expectations, attract and retain talented people
and be the law firm of choice for individuals and businesses alike.
Pursuant to requirements related to practice before the Internal Revenue Service, any tax
advice contained in this communication (including any attachments) is not intended to be
used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United
States Internal Revenue Code or (ii) promoting, marketing or recommending to another
person any tax-related matter.
Kelleher & Buckley, LLC Copyright 2014
Kelleher & Buckley, LLC
The Right Law Firm Can Make All The Difference
102 S. Wynstone Park Drive
North Barrington, Illinois 60010
Kelleher & Buckley, LLC
Phone (847) 382-9130 / Fax (847) 382-9135
www.kelleherbuckley.com