There are various Estate Planning mechanisms available to help defer, minimize, or even avoid certain taxes completely, such as capital gains or estate taxes.

Common Tax Deferment Tools

Some of the most commonly used tax deferment tools include the following:

  1. 1031 Exchanges
  2. Private Annuities
  3. Charitable Trusts
  4. Installment Sales
All of the tools involve the same basic premise of selling, exchanging, or transferring property to a trust, as applicable, through a highly structured format. By virtue of doing so, the proceeds you realize from the appreciation of the property are paid to you in a way that takes advantage of tax benefits under the relevant IRS rules.
With annuities, for example, the assets may be paid in installments throughout your life. Alternatively, the asset may be valued in special ways. Both of these solutions, however, are designed to trigger minimal taxes.

Let an Attorney Help With Your Tax Deferment

Keep in mind, however, that these transactions require very careful planning, and must be executed properly in order to be effective. Additionally, tax rules often change from year to year. Thus, you should be sure to contact an experienced Estate Planning or Tax Law Attorney to ensure that your goals are achieved.