Wealth Transfer through Estate Conservation
Wealth transfer is a both a selfless and selfish act. Perhaps like no other, being our final act. The wealth we transfer to our heirs can be simple or complex in our minds, but in the end did we help the intended recipients and are they capable of managing the wealth. Wealth is transferred and controlled through the following methods in order of greatest control:
- By title, joint tenants with rights of survivorship;
- By contract, beneficiary designation; and
- By law, will and trust.
The transfer of wealth can in many instances trigger an gift or estate tax exclusion, credit or a tax. The effective management of the wealth transfer process can maximize the wealth transferred to heirs through the timing the transfers and whether amount transferred was considered:
- Lifetime Gifts;
- Unified Credits; or
- Bequests.
Through wealth transfer strategies you can reduce (discount) the amount subject to tax or increase (leverage) the amount transferred through certain techniques that utilize trusts. You can extend the period before taxes are due for multiple lives and generations. You can benefit a cause or charity and still provide for family through charitable wealth transfer strategies. The types of trust utilized to maximize wealth transfer include:
|
|
|
With guidance from a True North Financial Advisor and your team of advisors you can:
- Develop a Comprehensive Plan;
- Minimize Taxes;
- Leverage Amount Transferred; and
- Extend Period Before Taxes Due.
