Estate Tax Planning for Hedge Fund and Private Equity Fund Managers

Article Excerpt:

It is clear that there continues to be considerable debate in Washington over the future of estate tax.  Throughout this period of uncertainty, there is still significant value in gift and estate tax planning when the right opportunity arises. A large benefit of estate planning involves asset protection and proper use of trusts, but maintaining flexibility is key.

With the use of proper advanced planning strategies, hedge fund and private equity partners possess unique opportunities to reduce gift, estate and generation skipping transfer tax liability. This planning can provide the family — over multiple generations — with the asset protection needed to protect it from creditors and tort, contract and divorce claims. This can benefit surviving spouses, children, grandchildren, and potentially more distant lineal descendants.