Estate Planning

What is the name of your state? Illinois

there is a gross estate of 9,000,000 includes property, stock, IRAs, 401(k), ins. policy, collection. husband and wife are expected to die 2007 0r 2008. i am thinking that i will gift the insurance policies so that he does not retain incedent of ownership. Also by gifting the policy, i can proportionally gift $22,000 to each child tax free. next i want to set up two trusts. trust (b) will be equal to the unified exemption equivelent ($2,000,000). Life estate going to the children and remainder going to grandchildren. trust (a) will be the rest going to the wife. all of it will be covered by marital deduction as long as QTIP election is made. while the remainder is going to children. does this sound correct? next i heard something about setting a 3rd trust might be beneficial. one that includes the GST exemption. i was wondering if anyone can expalin this to me? thank you.

[ALawyer]

Given the size of the estate and the complexity -- and the fact that the Federal estate tax laws are changing and state estate or inheritance taxes are increasingly important on large estates, your questions cry out for a consult with a TOP FLIGHT estate planning or tax lawyer. Use of life insurance trusts and family limited partnerships would seem appropriate.