Clinton Lack of Plan Could Be Costly

A Forbes magazine analysis of the Bill and Hillary Clinton’s family holdings suggests that their net worth is somewhere in the range of $45 million, which sounds like a pretty hefty nest egg. However, without proper estate planning, that sum could take a huge hit and leave a monstrous tax bill for whoever survives. Let’s break it down.  Right now, estate and gift taxes exclusions are at $5.45 million per person, so that would leave them with $34.1 million subject to a 40-percent tax.  That’s a whopping tax liability of $13.64 million! The Clintons are no dummies and are protecting their wealth by using an advanced planning technique called Qualified Personal Residence Trusts or “QPRTs.” In short, this puts their home into an irrevocable trust for a specified time.  They retain the right to use the home, but at the end of that designated period, the home goes to the remainder beneficiary, which may also be a trust. You may not have the Clinton millions, but you may still be able to use QPRTs and other estate and tax planning strategies to effectively protecting and even enhancing your asset base.  Give me a call at 805-778-0111 or e-mail

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