Study Shows that Some of America’s Wealthiest People Are Ready to Transfer Their Assets

The tax overhaul from 2017 has prompted many people to rethink their overall estate and tax strategies. The coronavirus pandemic has also made it easier for some of America’s wealthiest families to pass on assets to their grandchildren and children tax free. Volatile markets and plunging interest rates have created a unique opportunity just keeping plenty of financial advisors and estate planners busy.

Some of the ways that wealthy families are taking advantage of this current market is to loan assets or cash to other family members. This means that heirs are eligible to borrow up to millions of dollars and then reinvest that money in profit for many upsides. Many beneficiaries today would be eligible to lock in extremely low rates for years or even decades.

Other estate planning strategies, such as those that relay on loans to trusts are also extremely popular. The advantage of these techniques is that they don’t eat into the gift tax exemption for 2020. Many wealthy families are scheduling consultations with their estate planning lawyers to discuss grantor retained annuity trusts which enables beneficiaries to profit from future investment gains with minimal or no risk of losing money.

Our office is here to help- are you concerned with the most effective strategies to pass on your wealth to the next generation? We can advise you about next steps so you know what to expect. Contact our Virginia Beach office today.

 

 

Should You Give All of Your Assets to Your Adult Child?

Deciding whether or not to gift something over the course of your life or to pass it on once you are no longer around is an important decision, especially with regard to the federal gift tax. Every person can gift up to $15000 per year free of gift tax. This means that you do not have to file a gift tax return and that no taxes have to be paid on that amount.

Very few Americans will have to worry about the estate tax given the current exemption amount. But passing everything on to one child can be an extreme choice and could have risks that you might not know about.

First of all, this means that one child will own everything, and this was passed on while you were still alive. You as an individual or as a couple could become financially dependent on them for everything that your current income stream does not cover.

If your loved one receives all of your assets but changes their mind about taking care of you, there is nothing you can do about it. Furthermore, if your child goes bankrupt, divorces or dies, the money could also be lost. Consider any potential and capital gains tax implications in making any transfers and decide with the assistance of an experienced and trusted lawyer the most appropriate course of action.

With all that should be considered in passing on assets, turning to a trusted Virginia Beach estate planning law firm helps you pin down all the details and leave behind a thought-out plan for your loved ones.

 

Not Married? You Still Need an Estate Plan

As an unmarried couple, you might assume that you don’t have as much at stake if something were to happen to you or your partner. Whether you’ve legally tied the knot or not, you still need to think about how to protect yourself and your loved ones.

Adding children to your family is certainly an excellent opportunity to revisit and revise your estate planning tools and documents, but this doesn’t mean that you shouldn’t neglect the process of estate planning now while you have the opportunity.

Many different estate planning tools and strategies can be used while you are still alive. Some of the most important relate to empowering someone else to make decisions on your behalf if you are no longer able to do so. A financial or medical power of attorney authorizes another agent acting for you to make these decisions if you become incapacitated and cannot render them on your own.

These documents can be instrumental for you to have if you have specific wishes or intentions so that you can discuss these with your spouse, or any other person appointed as your power of attorney agent. Furthermore, unmarried couples can benefit from estate planning in terms of a discussion about who will receive your assets if you pass away. Unmarried partners, however, do not benefit from the same laws that protect married partners.

There are laws in place to protect spouses and couples where at least one person has failed to plan properly. But this does not mean that these same protections extend to unmarried couples. From beneficiary designations to a durable power of attorney to joint ownership; there are many different options available to unmarried couples that should be discussed with a Virginia Beach estate planning lawyer.