Estate planning General Rule is the act of anticipating and arranging for the disposal of an estate during a person’s life. Estate planning helps eliminate uncertainties.
Estate Planning
What Constitutes an Estate?
The General Rule
Internal Revenue Code Section 2031(a) defines an estate (for tax purposes) as including all of a person’s real or personal, tangible or intangible property. This includes property in which a person has a beneficial interest (the person has, is, or would receive an interest in a property).
Beneficial Interest Properties
A beneficial interest in property can include:
Certain life insurance proceeds
Retirement plan benefits
Annuities
Property subject to a general power of appointment
Property interests held in joint tenancy
Lifetime transfers (pursuant to IRC §§ 2035-2038)
Contingent claims arising before death
Lifetime gifts in excess of the annual gift tax exclusion amount
Partial value of gifts if the gifts were incomplete or partial
Gift tax on gifts within 3 years of death
A by-pass trust or marital deduction trust
