Gift Planning

Our publications aim to provide clarity on the current exemptions and exclusions while offering techniques to optimize your planning decisions. To view these topical advisories, click below.

Gift Assets Now
Currently, the estate and gift tax exemptions stand at $13.61 million per person (or double for married couples), but these exemptions are slated to revert to 2017 levels ($7 million per person, or double for married couples, indexed for inflation) by January, 2026. Furthermore, Connecticut residents face a unique consideration, as Connecticut is the sole state in the U.S. imposing a gift tax. By gifting assets now, individuals can capitalize on the current exemptions, safeguarding against potential estate tax burdens on future asset appreciation at death. Read on to learn more.

Dynasty Trusts
A Dynasty Trust, also known as a Generation-Skipping Trust, is designed to endure for generations, leveraging both federal gift tax exemptions and generation-skipping transfer (GST) tax exemptions. By funding the trust with appreciating assets and removing them from the grantor’s estate, individuals can secure tax advantages for several generations while safeguarding assets from gift, estate, and GST taxes. With an 800-year maximum trust duration in Connecticut, Dynasty Trusts offer a vehicle for lasting wealth preservation and transfer. Read on to explore the nuances of Dynasty Trusts and their potential benefits in wealth management and estate planning strategies.

SLATs
The Spousal Lifetime Access Trust (SLAT) remains a cornerstone technique for married clients amidst historically high federal transfer tax exemptions. A SLAT is an irrevocable trust where one spouse transfers assets for the benefit of the other spouse, effectively leveraging the high gift tax exemption amount while allowing continued access to the trust assets if needed. By shielding post-transfer appreciation from future gift, estate, and GST taxes, a SLAT provides married couples with a flexible means to make substantial, irrevocable gifts while retaining the possibility for the beneficiary spouse to access trust assets in the future if necessary. Read on to explore the benefits of SLATs as a tax-efficient estate planning strategy for married couples seeking to maximize their gifting opportunities while maintaining flexibility and access to trust assets.

GRATs
Grantor Retained Annuity Trusts (GRATs) offer a powerful mechanism for transferring wealth outside of one’s taxable estate while utilizing a minimal amount of gift tax ex-emption. Particularly beneficial for clients with appreciating assets, those who are risk-averse, or individuals seeking to maximize gifting opportunities, GRATs have become increasingly popular in recent years, especially in the context of low IRS interest rates. Read on to discover the mechanics and benefits of GRATs as an effective estate planning strategy for individuals seeking to preserve and transfer wealth to future generations.

Substitute Assets in Existing Grantor Trusts
Assets transferred to a grantor trust (also known as an “intentionally defective grantor trust” or “IDGT”) are excluded from the grantor’s estate for estate tax purposes at death, while the trust’s income is taxed to the grantor during their lifetime. This intentional taxation of trust income to the grantor serves to reduce the size of the grantor’s taxable estate and allows the trust to grow income tax-free. Read on to explore the role of IDGTs in effective estate planning and wealth preservation strategies.

Charitable Giving
Whether during life or at death, charitable giving offers an opportunity to make a meaningful impact while maximizing tax benefits. Under current law, distributions from a trust or direct transfers to tax-exempt nonprofit organizations do not trigger capital gain recognition events, providing an additional incentive for charitable contributions. However, proposed legislation poses potential changes to the benefits associated with split-interest charitable trusts, such as charitable lead trusts or charitable remainder trusts. As a preemptive measure, clients with charitable intentions are encouraged to consider creating such trusts now to secure their optimal benefits and lock in tax advantages. Read on to learn about the nuances of charitable giving strategies and the potential impact of proposed legislative changes on estate planning for charitable individuals.

5 Key Annual Requirements for Private Foundations
Private foundations, also known as “family foundations,” can serve strategic wealth planning goals for high-net-worth individuals while also serving charitable goals. However, private foundations require oversight and annual reporting, and administering a private foundation may be more onerous than it first appears. Read on as we discuss the key requirements and recommended practices associated with administering a private foundation.

Our curated episode list offers direct insight into the nuances surrounding the gift tax and serves as a resource when you have questions on topics such as: dynasty trusts, grantor trusts, GRATs, SLATs and charitable giving. To view the Future Focused: Sophisticated Planning episodes, click below.

Using Trusts For Your Beneficiaries
On this episode, we discuss common misconceptions related to trust planning and delve into the three reasons why trust planning is important for many clients. With an understanding that most clients do not want to “rule from the grave,” Erin and Michael highlight the spectrum of distribution options for trust beneficiaries and outline the choices to be made regarding distribution ages, creditor protection and trustee removal powers, to name a few, as well as the implications of the Uniform Trust Code in certain jurisdictions.

Estate Planning 2024: Opportunities and Challenges Ahead
On this episode, we discuss the exciting estate planning opportunities arising from recent changes in estate, gift, and generation-skipping tax exemptions. 2024 presents a prime window for seizing the moment and making substantial gifts before the exemptions get halved in 2026.

Key Considerations with Generation-Skipping Transfer Tax
Join us as we highlight the importance of strategic thinking when it comes to Generation-Skipping Transfer (GST) Tax and its impact on estate planning. From exploring the benefits of the “Med-Ed Exclusion” for gifts directed towards qualified education or medical expenses to leveraging the lesser-known GST tax annual exclusion amount for tax-free gifts, we provide valuable insights to help you make informed decisions on your estate planning journey.

SLATs and Gifting
In this exciting episode, we dive deep into the world of estate planning to explore one of the most buzz-worthy topics: spousal lifetime access trusts (SLATs). With an eye on the implications of utilizing SLATs in the post-Tax Cuts and Jobs Act landscape, we explore strategies for maximizing one’s lifetime exemption amount and effectively removing assets from a client’s taxable estate. Through detailed examination of various scenarios, they highlight the nuanced pros and cons of incorporating SLATs as a central mechanism for achieving substantial wealth transfer and minimizing transfer taxes.

SLATs: Are Two Good to Be True?
Check out this episode to explore advanced strategies for creating Spousal Lifetime Access Trusts (SLATs) tailored for married clients. Discussing the nuances of utilizing both clients’ lifetime exemption amounts while mitigating the risk of triggering the Reciprocal Trust Doctrine, we offer valuable insights and practical advice. Through a series of illustrative examples, we provide actionable strategies for structuring and funding SLATs in a manner that safeguards against potential tax pitfalls. Professionals in the field will find this discussion both informative and engaging, serving as a valuable resource for navigating the complexities of estate planning with SLATs.

At Wiggin and Dana, our estate planning team is here to help you set clear goals, plan strategically, and focus on various estate planning needs. Whether you are looking to take advantage of current tax exemptions, review and update your existing estate plans, or explore strategic opportunities for wealth transfer, our experienced attorneys are here to provide personalized guidance tailored to your unique needs and goals.

Estate Planning
The estate planning team at Wiggin and Dana is dedicated to helping you secure your legacy and protect your assets for future generations, especially in light of significant changes in gift and estate tax exemptions beginning in 2026. With this looming dead-line, it may be important to act now and take advantage of current exemptions. Read on to learn about our estate planning services.

Trust and Estate Administration Services
Our trust and estate administration services team offers unparalleled guidance and support to executors, trustees, and beneficiaries navigating the challenges of administering an estate or trust. Funding trusts now and taking advantage of higher exemption amounts may be key to avoiding suboptimal outcomes for the administration of an estate or trust. Read on to learn about our trust and estate administration services.

Family Office and Strategic Investments
As the role of the family office grows within the private investment community, we offer our high-net-worth family and family office clients a level of knowledge that can only be derived from decades of experience working with private investors and navigating com-plex family dynamics. Specializing in wealth preservation, tax efficiency, and multi-generational panning, we deliver comprehensive solutions that safeguard our clients’ assets and facilitate their financial goals. Acknowledging the central role high-net-worth families and family offices play in managing significant wealth and preserving family legacies, we provide an extensive suite of interdisciplinary legal services tailored to tackle their most critical challenges. Read on to learn about our family office and strategic in-vestments services.

Family and Closely-Held Business Planning
Understanding the unique challenges facing business owners, our Family and Closely-Held Business Planning Practice Group provides comprehensive, cost-effective counsel tailored to your business and personal goals, regardless of company size. We handle everything from drafting shareholder agreements to designing customized estate plans and partnering with our real estate, litigation, and intellectual property attorneys – among others at the firm – to provide exceptional in-house services. Working seamlessly and efficiently, we advance both your business and family objectives, delivering exceptional value every step of the way. Read on to learn about our family and closely-held business planning services.

International Private Client Services
Our International Private Client Services team caters to U.S. citizens, foreign nationals and international families alike to help them find innovative and cost-effective solutions to their complex multi-jurisdictional investment, tax, estate planning and asset-protection needs. Given the complex nature of reconciling U.S. and foreign tax laws, it is essential to take steps to preserve wealth and implement effective succession planning strategies that comply with evolving tax laws. Read on to learn about our international private client services.

Philanthropy
At Wiggin and Dana, we are well-versed in the intricacies of the tax laws relating to charitable giving with colleagues who regularly counsel operating charities, private foundations and other tax-exempt organizations. Our Philanthropy Practice Group assists clients in establishing charitable trusts, private foundations, and other philanthropic vehicles to support causes they are passionate about while maximizing tax benefits and achieving their charitable goals. With impending shifts in gift and estate tax law, now is the time to review your charitable goals and explore other philanthropic opportunities that align with your values and objectives. Read on to learn about our philanthropic services.