3. The Estate Tax Eliminator

You can to leave future stock earnings to your kids while escaping the estate tax. Set up a Grantor Retained Annuity Trust, or GRAT, listing your kids as beneficiaries. Under the GRAT, the amount contributed along with the interest would be fully returned to you over a predetermined period. The returns your money earns in excess of the interest rate would be retained in the trust and gets passed on to your kids, everlastingly free of estate and gift taxes.

4. The Trust Freeze

You can prevent taxes from being charged on the appreciated value of your estate, if you “freeze” it. For example, if you own an income-producing asset which you want to leave for your children. Freeze this asset for one or decades. Then gift your children a lump sum amount, and deposited it in a trust while making them as the beneficiary. This trust money will be further used for buying your income-producing asset. So the asset which the trust has bought from you will be gifted to children without charging any gift tax.