Estate planning often involves lifetime gifts to children. This gets appreciation on the assets out of the parents' estates. This was also done in the past to shift income to children who were usually in a lower tax bracket.

Now a child under 14 pays tax at the parents' highest marginal tax rate on the child's unearned income over $1600 if that would be higher than the child's tax.

Call attorney Don Thompson at 312-782-0844 for all Chicago Estate Planning matters.