Bridge Law LLP

Is securing your legacy through an estate plan all about keeping your wealth for future generations? Of course not. It should come as no surprise that many of those who have been financially fortunate include gifts to charities in their estate plan. What may be a surprise, though, is the added tax and financial benefits a tool like a Charitable Remainder Annuity Trust (CRAT) can have for the donor.

This type of trust is designed to provide a steady income to the beneficiary for a specified term (or the lifetime of the beneficiary) before the remainder is transferred to a qualified charitable organization. The donor can claim an immediate charitable deduction when the trust is created, defer capital gains taxes when appreciated assets are placed in the trust, and reduce the size of their taxable estate, all while gaining a predictable income stream.

If you want to learn more about how to benefit worthy causes in your estate plan while still securing financial stability for yourself and your heirs, the experts at Bridge Law LLP can help you explore your options. Contact us today to schedule your consultation.

📞(714) 525-2400

http://bridgelawllp.com/charitable-remainder-annuity.../

When you’re looking for an estate planning attorney, you know that the stakes are high—legal mistakes or incomplete strategies can leave your assets exposed to liability, increase your tax burden, or simply fail to distribute your estate as you intend. So how do you find the top-rated, highly qualified attorney you need?

Look for somebody local. Local knowledge is crucial for understanding state-specific regulations and property considerations.

Check for strong client reviews and recognized credentials.
Select the right specialization: an attorney with experience specifically in estate planning, trusts, advanced tax strategies, and asset protection.

At Bridge Law, our experienced team of estate planning attorneys is skilled at aligning the right estate planning strategies with your long-term goals, including cross-border estate structures and business succession planning. If it’s time to start building your plan, contact us to schedule your consultation.

📞(714) 525-2400

bridgelawllp.com/practice-areas/estate-planning/

A mid-market company agrees to be acquired.
Everything looks aligned.
Until tax modeling begins.
The buyer wants a 338(h)(10) election for the step-up.
The seller didn’t plan for the ordinary income implications.
Negotiations stall.
Trust erodes.
Value shifts.
Why?
Because structure wasn’t discussed early.
Section 338(h)(10) and 336(e) elections aren’t technical footnotes.
They are negotiation tools.
They influence:
• Allocation of purchase price
• Post-closing liability exposure
• Net after-tax proceeds
• Long-term amortization benefits
Waiting until the purchase agreement stage can cost leverage — or millions.
Early legal strategy isn’t conservative. It’s strategic.
Bridge Law helps clients align tax, legal, and deal objectives before they’re locked into position.
The best time to discuss elections?
Before your term sheet is finalized.

http://bridgelawllp.com/section-338h10-and-section-336e.../

A mid-market company agrees to be acquired.
Everything looks aligned.
Until tax modeling begins.
The buyer wants a 338(h)(10) election for the step-up.
The seller didn’t plan for the ordinary income implications.
Negotiations stall.
Trust erodes.
Value shifts.

Why? Because structure wasn’t discussed early.
Section 338(h)(10) and 336(e) elections aren’t technical footnotes.
They are negotiation tools.
They influence:
• Allocation of purchase price
• Post-closing liability exposure
• Net after-tax proceeds
• Long-term amortization benefits
Waiting until the purchase agreement stage can cost leverage — or millions.

Early legal strategy isn’t conservative. It’s strategic.
Bridge Law helps clients align tax, legal, and deal objectives before they’re locked into position.
The best time to discuss elections?
Before your term sheet is finalized.

http://bridgelawllp.com/section-338h10-and-section-336e.../

Everyone negotiates purchase price. Few negotiate structure.

A founder signs a term sheet for what looks like a strong stock sale.
The buyer assumes they’ll receive a stepped-up asset basis.
The seller assumes capital gains treatment.
But no one discussed Section 338(h)(10).
Or Section 336(e).
And suddenly — the tax outcome doesn’t match expectations.

These elections can fundamentally change how a transaction is taxed.
They can impact after-tax proceeds, asset basis, and future liability exposure.
But here’s what most people don’t realize:
Some elections require joint consent.
Some shift control to one side.
All of them require early planning.

By the time you’re deep in diligence, leverage is limited.
The smartest deals start with structure — not signatures.
Meet and confer with Bridge Law before your next LOI. Not after.

http://bridgelawllp.com/section-338h10-and-section-336e.../

When one spouse dies, all their property can pass to their surviving spouse (provided they’re a U.S. citizen) without incurring tax or using any portion of the deceased spouse’s gift and estate tax exclusion.

But is that always a good idea? The combined value of the estate will be taxed when the second spouse dies, well after the opportunity to shield some part of its value with the first spouse’s tax exclusion amount has passed. Exercising a marital share funding option can allow the surviving spouse to allocate assets to the non-marital share, using that exclusion before it goes away and lowering the value of their estate to minimize later tax exposure.

The disadvantage of this strategy? It requires timely action after the death, when a surviving spouse is under stress and grieving—no time for snap decisions. The answer is to understand the options before the situation arises. If you’d like to know more about marital share funding and other options to strategically use your lifetime federal and gift tax exclusion, contact the Trusts & Estates team at Bridge Law to set up your consultation.

📞(714) 525-2400

bridgelawllp.com/marital-share-funding-options/

Estate taxes stand to drain your family’s wealth every time one generation passes its assets down to the next. So, can you skip a round of taxes if you skip a generation—for example, grandparents transferring wealth to their grandchildren?

Unfortunately, no. The Generation Skipping Transfer Tax (GSTT) places a lifetime limit on how much can be transferred to persons at least two generations below the transferor before the tax is triggered. However, effective January 1, 2026, the amount of this exemption will be permanently raised to $15 million per individual, to be indexed for inflation after 2026, aligning it with the lifetime gift and estate tax exclusion.

As with that more familiar exclusion, using the GSTT exemption strategically to protect as much wealth from taxation as possible is more complex the more assets you have to shield. But it can be done. At Bridge Law, our Trusts & Estates team understands how to build your estate plan for maximum tax efficiency. To schedule your consultation, contact us today.

📞(714) 525-2400

bridgelawllp.com/the-generation-skipping-transfer-tax-gstt/