Estate and Income Tax Reduction Strategies in a Bear Market

Estate Planning

1) If you are not selling options or using margin trading, you should revoke your margin agreements.  This reduces your risk by ensuring that your securities are not lent.

 2) Roth IRA conversions should be aggressively reviewed.
3) Loss Harvesting, while remaining in the market should be reviewed.
4) For now, if you have over $100,000 in one bank you should consider using several banks.
5) GRATs to freeze (for tax purposes) the value of depressed stocks should be implemented.
6) Large gains should be taken under the 15% tax rate compared to a higher future tax rate.
7) Tax efficient asset allocation between Roth’s, Qualified Plans and outside accounts should be reviewed.
8) Parents should aggressively gift and sell closely-held business interests to trusts for children and Grandchildren.
9) Taxable Gifts, incurring a gift tax, will in vogue under a new administration.
10) Oil and Gas will continue to provide tax and financial planning opportunities.
11) Have an expert review all life insurance policies.
12) Consider funding dynasty trusts today ($2,000,000) and on January 1, 2009 ($1,500,000).
 From Bob Keebler, CPA
Address: 1414 Raleigh Rd Ste 203, Chapel Hill NC 27517
Phone: 919.636.0950 | Toll Free: 800.201.0413 | Fax: 919.493.6355 |