Fresh Approaches to Using Unified Tax Credit in Estate Plans National Underwriter (Life/Health) (04/02/01) Vol. 105, No. 14 p.7; Scroggin, John J.
While the Unified Tax Credit (UTC) remains a central part of
estate planning, a new approach to it--in two major ways--may be
necessary. First, the UTC should be viewed as a tax-saving asset of the
estate. Second, the benefit of the UTC is not only its transfer tax
saving value. Income tax savings acquired through effective use of the
UTC can provide additional benefits for a client. This effective use
includes employing discounting techniques to leverage the value of
assets passed below the UTC, and moving future value out of a taxable
estate through sensible use of the UTC.