1. Qualified Personal Residence Trust (QPRT)
The QPRT allows you to move your primary or secondary residence out of your taxable estate while still allowing you to retain complete possession and use of the residence. After your passing the home is then transferred to your intended beneficiaries. This technique, while effective at reducing your taxable estate, can become complicated if you wish to sell the property in the trust.

2. Build Up Equity Retirement Trust (BERT)
The BERT is a tax sheltered irrevocable trust that is set up by each spouse for the benefit of the other spouse. Gifts are made to the trust annually and, while still accessible, the assets are exempt from gift tax and estate tax. Also, because the trust is irrevocable the assets are protected from creditors and predators. Then upon the spouses death the assets are passed on to intended beneficiaries.

3. Irrevocable Life Insurance Trust (ILIT)
The irrevocable life insurance trust or ILIT is a special type of trust that holds, and is the beneficiary of, a special type of insurance. This insurance inside this trust is guaranteed level premium, guaranteed benefit and can be placed on the life of one spouse or both spouses. The payout from the policy is not estate taxable and is specifically earmarked to pay the estate taxes.

4. Limited Liability Companies (LLC)
An LLC is a business entity formed under the laws of specific states and are commonly used for estate compression for tax purposes and asset protection. Shareholders or “Members” of the LLC cannot be personally liable for the debts of the LLC. Also, the assets that are owned by the LLC can be “compressed” and used for wealth transfer.

5. Grantor Retained Annuity Trust (GRAT)
A GRAT is an irrevocable trust in which the grantor transfers assets into the trust and retains the right to annual payments of a fixed amount of principal and interest for a prescribed number of years. At the end of the period the assets go to the beneficiaries in accordance with the grantors' intentions.

6. Inheriting Trust
An Inheriting Trust is a special type of dynasty trust that is designed by the inheritor to receive an inheritance. The trust offers greater asset protection and estate tax planning while still giving the inheritor all the rights, benefits and control over the trust property that the individual would have through outright ownership.

7. IRA Inheritance Trust (IRAIT)
Eventually we are all going to pass on to our greater glory. It is how we are remembered by those who loved us and knew us that keeps us alive forever. With the IRA Inheritance Trust a check will be coming to your beneficiaries with your name on it for their benefit every quarter. This will be part of your legacy.

Estate planning is a complex and highly specialized area of law with many potential pitfalls. Often people who have been financially successful and have planned well throughout their entire lives simply drop the ball when it comes to properly distributing their assets to heirs. These are some of the most common mistakes people make when planning their estate. Understanding and avoiding these mistakes will help to ensure that your wishes are fulfilled and minimize the tax.   

1. Leaving the Living Trust Unfunded:
A living trust is merely a vehicle that allows you to pass your assets outside of probate. However, if there are no assets in the trust, nothing has been accomplished. There is no point in drafting a living trust if the assets are not re-titled into the name of the trust.

2. Leaving Assets as Joint-Tenancy:
Titling assets under joint-tenancy / with-right-of-survivorship (JT/WROS) does avoid probate because the assets pass automatically upon the first death. However, those assets will be subject to federal and applicable state estate taxes when the second person passes away.

3. Leaving Assets Outright to Beneficiaries:
Assets that are left outright to heirs and beneficiaries are exposed to creditors, predators and divorcing spouses. It is much better to leave assets in trust for their benefit. Assets left in trust are totally asset protected. The beneficiaries still have access to the funds but creditors, lawsuits and divorcing spouses cannot touch the assets inside the trust.

4. Using a Joint Trust:
Joint trusts are common and used frequently in community property states. However, they can become very cumbersome and unwieldy upon the death of the first spouse. It is much simpler and cleaner to have a revocable living trust for husband and one for wife.

5. Not Having a Living Will:
Some people assume that because they have a living trust they do not need a living will. This assumption is wrong. A living will gives guidelines for your physician to follow in the event you are in a terminal, end-stage, and persistent vegetative state.

6. Owning Life Insurance in Your Own Name:
Many people are not aware that the death benefit of an insurance policy owned by the insured is included in their taxable estate. This can cause a large portion of the death benefit to be eaten up by estate taxes. A simple way to avoid this is to create an irrevocable life insurance trust or ILIT. The money will pass outside the estate to the named beneficiaries without being subject to estate tax.

7. Not Communicating with Trustees and Beneficiaries:
It is important to let the people who are named in your estate plan, either as trustees or beneficiaries, know what role you are asking them to play. Proper communication with these people will go a long way to ensure a smooth transition during the settlement of your estate.

8. Not Knowing Where All the "Stuff" Is:
A scattered estate plan by a secretive decedent may cause some assets to be left uncollected, undistributed and even lost.

9. Not Putting Your “Stuff” into the Trust:
Things like furniture, art and clothes do not have a title to them. Therefore, they must be transferred into the trust using a quitclaim bill of sale. Assets left outside the trust will go through probate. There is no point in probating your “stuff” if it can pass through the trust to your heirs.

10. Not Updating Your Estate Plan:
Each year Congress passes new laws, the IRS issues new regulations and circumstances in your own life change. All of these things can affect your estate plan. It is imperative that your estate plan is reviewed on an annual basis to avoid unintended results.

What is a private foundation?
A private foundation is a separate, not-for-profit entity which can be controlled by a person, a family, or a business. It is considered a charitable giving vehicle that gives you more control over your assets and how they are distributed, moving the control from the IRS, back into the donors hands.

How do they work?
A private foundation can be set up with as little as $100,000 and no upper limit on the size of the foundation. The donor will pick an IRS approved 501(c) (3) organization, which would include most charitable, educational, religious, scientific, and literary organizations to which the foundation will
donate the assets. Each year, the IRS requires the foundation to give away at least 5% of the foundation's previous year’s average net assets for charitable purposes.

What are the benefits to opening a private foundation?
By opening a private foundation you will have more control over the assets than with any other giving vehicle. You can also take an immediate tax deduction even if the funds that you gave to the foundation's are not being immediately appropriated. Gifts to a private foundation are tax deductible
up to 30% of AGI for cash, and 20% of AGI for appreciated securities with a five-year carry forward.

What are the limitations on private foundations?
While it is legal to appoint family members to the foundation, payment from the foundation’s assets require strict adherence to IRS rules and regulations. The IRS has a strict no self-dealing policy. Things that fall into this category include buying or selling items to the foundation, keeping the foundation's assets such as paintings or jewelry on private property, or any personal use of foundations assets.