top of page
Search

Advanced Estate Planning Tax Strategies: A Guide for Michigan Investors

  • Parkview Partners Capital Management
  • Oct 10
  • 3 min read

Navigating wealth transfer requires more than a basic will. For high-net-worth individuals and families, developing an advanced estate plan that addresses potential tax implications may help preserve a legacy. Careful implementation of estate planning tax strategies can support your goals for asset distribution while working to minimize the impact of estate and gift taxes.


This guide provides an overview of advanced estate planning approaches. It is designed for educational purposes and is not a substitute for personalized advice from qualified legal, tax, and financial professionals. The suitability of any strategy depends on your financial situation, goals, and risk tolerance.


Understanding Advanced Estate Planning and Gifting


At its core, estate planning is about controlling how your assets are distributed. Advanced strategies introduce an additional layer: tax efficiency. Federal and state estate taxes can significantly reduce the wealth transferred to the next generation. With the federal exemption scheduled to decline in future years, proactive planning is increasingly important.


Common approaches include trusts and gifting techniques to move assets outside a taxable estate. By transferring assets during your lifetime, you may reduce estate size below the exemption threshold and potentially shield heirs from larger tax exposure. Always coordinate with your advisors to ensure strategies align with your legacy and wealth management goals.


Implementation checkpoints:


  • Review current federal and Michigan-specific estate and gift tax laws.

  • Assess your net worth to determine whether advanced strategies are applicable.

  • Clarify legacy goals (education funding, philanthropy, family business support).

  • Consult your advisory team: estate attorney, CPA, and financial advisor.


ree

Exploring Grantor Retained Annuity Trusts (GRATs)


A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust often considered to transfer appreciating assets with potentially minimal gift-tax cost. The grantor funds the trust with assets expected to grow and receives annuity payments over a set term.


If assets outperform the IRS Section 7520 rate, appreciation above that threshold may transfer to beneficiaries (often children or grandchildren) with reduced tax consequences. Effectiveness depends on performance, interest rates, and timing.


Implementation considerations:


  • Fund with growth assets (e.g., concentrated equity, pre-IPO stock).

  • Choose an appropriate term length.

  • Evaluate the impact of Section 7520 rates.

  • Recognize mortality risk if the grantor does not outlive the trust term.


ree

Irrevocable Life Insurance Trusts (ILITs)


An Irrevocable Life Insurance Trust (ILIT) may help provide liquidity for estate settlement while keeping the death benefit outside of the taxable estate. The trust owns the policy, and proceeds can support heirs by covering estate taxes or equalizing inheritances.


Implementation considerations:


  • Properly fund premiums (often via annual gifts).

  • Follow gift-exclusion rules carefully.

  • Select a trustee with experience.

  • Understand irrevocability and the three-year look-back rule for transferred policies.


ree

Spousal Lifetime Access Trusts (SLATs)


A SLAT may appeal to couples wishing to use their gift-tax exemptions while maintaining indirect household access. One spouse makes a gift into an irrevocable trust benefiting the other spouse. The donor spouse indirectly benefits when distributions are used for shared expenses. Remaining assets may pass to children outside of either spouse’s estate.


Implementation considerations:


  • Avoid reciprocal trust issues.

  • Fund with assets owned solely by the donor spouse.

  • Consider divorce or death risks.

  • Use an independent trustee to maintain tax integrity.


Charitable Giving Strategies


Philanthropic investors may integrate charitable vehicles into estate planning tax strategies:


  • Charitable Remainder Trust (CRT): Provides income for a term or life; remainder goes to charity. May generate an income-tax deduction depending on structure.

  • Charitable Lead Trust (CLT): Pays income to charity for a term; remainder passes to heirs, potentially at a reduced transfer-tax cost.


Implementation considerations:


  • Ensure charitable intent.

  • Evaluate income impact.

  • Select an experienced trustee.

  • Consider appreciated securities as funding assets.


ree

Conclusion: Partnering with Professionals


Advanced estate planning is complex and individualized. Each strategy involves legal, financial, and tax considerations that require professional guidance. Working with a qualified team — including an estate attorney, CPA, and experienced financial advisor — is an important step in building a cohesive strategy to preserve wealth for future generations.



Investment advice offered through Stratos Wealth Partners, Ltd., a registered investment advisor. Stratos Wealth Advisors, LLC 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 a guarantee of future results.


 
 
 

Comments

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

  • LinkedIn

FORM CRS

 

Privacy Policy

​

​

Investment advisory services are offered through Stratos Wealth Partners, Ltd., a Registered Investment Advisor located in Beachwood, Ohio. [www.stratoswealthpartners.com]. 

Parkview Partners Capital Management offers its financial services through Stratos Wealth Partners, Ltd., (“Stratos”), a Registered Investment Advisor with the U.S. Securities and Exchange Commission (the “SEC”) located in Beachwood, Ohio. Parkview Partners Capital Management  operates as a DBA branch of Stratos Wealth Partners, Ltd. More information regarding Stratos may be found at www.stratoswealthpartners.com. Registration with the SEC does not imply a certain level of skill or training. Public information concerning Stratos Wealth Partners is available at https://www.adviserinfo.sec.gov. A copy of the Stratos’ current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request and/or on this web site at www.stratoswealthpartners.com.

​

Stratos may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. Stratos’ web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Stratos’s web site on the Internet should not be construed by any consumer and/or prospective client as Stratos’ solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by Stratos with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of Stratos’ current written disclosure Brochure discussing Stratos business operations, services, and fees is available from Stratos upon written request. Stratos does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third-party, whether linked to Stratos’ web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
 
Information presented on this site is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any product or security. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed here. When you link to any of the websites provided here, you are leaving this website. The information and opinions contained in any of the material requested from this website are provided by third-parties as well. They are for informational purposes only and are not a solicitation to buy or sell any product mentioned. We make no representation as to the completeness or accuracy of the information provided by these third-party websites or third- party materials.

 

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Stratos Wealth Partners, LTD), will be profitable or equal any historical performance level(s).
 
Certain portions of Stratos’ web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Stratos (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Stratos, or from any other investment professional. Stratos Wealth Partners, LTD is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.

Each client and prospective client agree, as a condition precedent to his/her/its access to Stratos’ web site, to release and hold harmless Stratos, its officers, directors, owners, employees and agents from any and all adverse consequences resulting from any of his/her/its actions and/or omissions which are independent of his/her/its receipt of personalized individual advice from Stratos.

bottom of page