When you consider the goals of estate planning, typically people want to pass on their property and assets to their loved ones. People may preserve wealth by careful investments in rare coins, fine art, exclusive real estate, and other items estimated to maintain or increase in value. However, wealthy individuals may need innovative and comprehensive strategies designed with an eye toward strategic wealth preservation through estate planning.
Irrevocable trusts offer a way to protect your assets from creditors, ex-spouses, civil judgments, and more. In fact, trusts may allow you to preserve your wealth during your lifetime and for generations to come.
Individuals may buy large insurance policies, then name an irrevocable life insurance trust (“ILIT”) as sole beneficiary. Insurance proceeds will pass to beneficiaries without the need for a costly probate proceeding. Using an ILIT may reduce federal estate taxes and retain more of the proceeds for the grantor’s heirs.
Business interests, including those in a family-owned concern, may be a large part of a wealthy individual’s portfolio and potential probate assets. Transferring business interests to a trust might help preserve the business for future generations. In addition, succession plans typically addresses leadership and management issues that may negatively affect business operations.
Engage in tax-reduction strategies is just one method of ensuring as much wealth passes to your heirs as possible. Additionally, income tax, gift tax, and generation-skipping taxes can be addressed with your estate planning lawyer.
For example, a generation-skipping trust may transfer wealth while passing taxes on to future generations. By establishing a Grantor-Retained Annuity Trust (“GRAT”), a grantor may make pay taxes incurred on large gifts made to his or her heirs. The grantor pays the taxes when the trust is created.
Strategic wealth preservation through estate planning requires careful and thorough analysis of a client’s circumstances before developing the right estate plan. At the Law Offices of John Mangan, P.A., we help clients choose strategies that meet their needs. If you are concerned about preserving and transferring your wealth, please contact us at 772-324-9050 to schedule an appointment or fill out our Contact Form. We are located in Palm City, Florida, and serve clients in surrounding communities like Stuart, Hobe Sound, Port St. Lucie, and Jupiter, too.