Squeeze, Freeze, And Burn... Squeeze Through Now Before It’S Too Late

Squeeze, Freeze, and Burn. It sounds like an odd phrase, but it is actually a term used to describe a highly effective estate planning technique. It’s so effective, in fact, that as early as this September the IRS is expected to change some of the rules governing the “Squeeze” aspect—but more on that later.

First, you probably already know that the estate tax exemption is around $5 million per person ($5.43 million in 2015), and assets above the exemption are subject to a 40% estate tax. But, did you know that the estate tax is a voluntary tax? Estate planners have enough estate planning tools in their tool boxes that even the wealthiest of people can avoid making the IRS a “silent partner” in their family’s wealth. If you have assets valued above $5 million, or if you expect to have assets valued above $5 million upon your death, then you need to know about the Squeeze, Freeze, and Burn strategy and how it will likely soon change.