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8 Advanced Estate Planning Tax Strategies for 2025

  • Parkview Partners Capital Management
  • Sep 8
  • 4 min read

Updated: Sep 30

Preserving wealth for future generations requires more than a simple will; it often involves a thoughtful, tax-efficient estate planning strategy. Effective estate planning helps ensure assets are transferred according to your wishes while potentially reducing federal and state tax exposure. As exemption levels and tax laws evolve, understanding advanced estate planning tax strategies may make a meaningful difference in the legacy you leave behind.


This article highlights eight advanced estate planning tax strategies commonly considered by high-net-worth individuals, business owners, and families. These summaries are designed to provide background knowledge and prepare you for informed conversations with your advisory team.


Important Note: This content is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult with qualified professionals before making decisions.


1. Revocable Living Trust


A Revocable Living Trust allows you to hold and manage assets within a separate legal entity created during your lifetime. You may serve as trustee, with flexibility to modify or dissolve the trust if needed.


One of the key benefits of this estate planning tool is that it may help assets avoid probate, potentially saving time, expense, and keeping financial affairs private.


Implementation considerations:


  • Retitle significant assets into the trust’s name.

  • Align retirement and life insurance beneficiary designations with the trust.

  • Review every few years or after life changes.

  • For complex estates, consider appointing a professional trustee.


This infographic summarizes the key benefits of incorporating a Revocable Living Trust into your estate plan.

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2. Grantor Retained Annuity Trust (GRAT)


A Grantor Retained Annuity Trust (GRAT) involves transferring appreciating assets into an irrevocable trust while retaining fixed annuity payments for a set period. If assets grow faster than the IRS Section 7520 rate, the excess value may pass to beneficiaries with little or no additional gift tax.


Implementation considerations:


  • Choose high-growth assets.

  • Shorter trust terms may reduce risk.

  • Rolling GRATs can extend potential benefits.

  • Maintain liquidity outside the GRAT.



3. Charitable Remainder Trust (CRT)


A Charitable Remainder Trust (CRT) allows you to donate assets into an irrevocable trust, receive an income stream for life or a term of years, and leave the remainder to a designated charity.


Implementation considerations:


  • Decide between CRAT (fixed annuity) or CRUT (percentage payout).

  • Contribute before a liquidity event.

  • Professional management is recommended.

  • Consider pairing with a life insurance trust to balance benefits for heirs.


4. Generation-Skipping Trust (GST)


A Generation-Skipping Trust (GST) transfers assets directly to grandchildren or later generations, potentially bypassing estate taxes at your children’s level.


Implementation considerations:


  • Apply GST exemptions strategically.

  • Appoint a qualified trustee.

  • Review state dynasty trust laws.


Ensure integration with your broader estate plan.


5. Qualified Personal Residence Trust (QPRT)


A Qualified Personal Residence Trust (QPRT) transfers a primary or vacation home into an irrevocable trust at a discounted gift tax value, while you retain the right to live there for a set number of years.


Implementation considerations:


  • Balance term length and mortality risk.

  • Obtain a professional appraisal.

  • Plan for rent payments if you remain after the term ends.


6. Charitable Lead Trust (CLT)


A Charitable Lead Trust (CLT) provides income to a charity for a specific period, with remaining assets distributed to family members.


Implementation considerations:


  • Fund with appreciating assets.

  • Evaluate grantor vs. non-grantor options.

  • Select reliable charitable beneficiaries.


7. Family Limited Partnership (FLP)


A Family Limited Partnership (FLP) is a legal business entity for managing family assets such as real estate or investments.


Implementation considerations:


  • Follow strict business formalities.

  • Avoid personal use of partnership assets.

  • Use professional valuations.

  • Ensure a legitimate business purpose.


8. Irrevocable Life Insurance Trust (ILIT)


An Irrevocable Life Insurance Trust (ILIT) removes life insurance proceeds from your taxable estate, providing liquidity for estate taxes or family needs.


Implementation considerations:


  • Use Crummey powers for annual gifts.

  • Appoint an independent trustee.

  • Establish a clear premium funding plan.

Trust Type

Complexity

Use Cases

Advantages

Revocable Living Trust

Low–Medium

Avoiding probate, managing assets during life

Flexible, can be changed; maintains privacy; avoids probate

Irrevocable Trust

High

Asset protection, tax reduction

Removes assets from taxable estate; protects from creditors

GRAT (Grantor Retained Annuity Trust)

Medium

Transfer appreciating assets to heirs

Potentially tax-efficient transfer if returns exceed IRS hurdle rate

Charitable Remainder Trust (CRT)

High

Philanthropy + income stream

Provides income to grantor/beneficiaries; remainder goes to charity; tax benefits

Charitable Lead Trust (CLT)

High

Supporting charities first, then heirs

Immediate charitable gift; remainder passes to heirs at reduced transfer tax cost

Special Needs Trust

Medium

Supporting beneficiaries with disabilities

Provides financial support without impacting eligibility for government benefits

Conclusion


These eight advanced estate planning tax strategies—from Revocable Living Trusts to Irrevocable Life Insurance Trusts—demonstrate the many tools available aimed to help preserve wealth and planning for future generations. While each trust or partnership structure offers distinct potential benefits, the most effective results come from integrating strategies into a coordinated estate plan.


Disclosure: Investment advice offered through Stratos Wealth Partners, Ltd., a registered investment advisor. Stratos Wealth Partners, Ltd. and Parkview Partners Capital Management are separate entities. Neither Stratos nor Parkview Partners Capital Management provides legal or tax advice. Please consult legal or tax professionals for specific information regarding your individual situation. Past performance is not indicative of future results. For additional information, including our Form CRS, please visit our website.


 
 
 

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Financial Advisor, Investment Advisor, High Net Worth, Wealth Management, Tax Planning, Risk Management, Financial Coordination, Retirement Planning, Charitable Giving, Columbus Ohio, Parkview Partners Capital Management

291 East Livingston Ave.
Columbus, OH 43215


Phone: (614) 427-2132

Fax: (614) 427-2132

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