Wealth Transfer Legacy Issues and Solutions

Wealth Transfer Legacy Issues and Solutions

  • John Griffin
  • October 25, 2016

Planning is Key When Dealing with Wealth Transfer Legacy Issues and Solutions

As a visionary entrepreneur or a talented professional or a brilliant executive, you work for decades creating, accumulating, and multiplying family wealth. The key to protecting that wealth in a way that leaves your legacy intact, and through a process that you control and design requires a solid strategy to address wealth transfer legacy issues and solutions, and time for advanced planning.

The Value of Control

In the same way you took control of your business success, you can control how your wealth will be transferred at the end of your life—sustaining success for your family over generations.

The Importance of Meaning

At some point most successful people begin focusing on the meaning of success and the legacy they leave behind. These thoughts are usually clarified by the concept of stewardship. Once you are certain financial security and harmony for your family are assured, you can better understand your capacity to impact the quality of life for others in more dire circumstances. When all these elements are planned and coordinated, your legacy is assured.

The Impact of Doing Nothing

If you do nothing—or too little—to sustain your wealth for your family, or employ it for the good of others, you run the risk of losing a large chunk to the Internal Revenue Service. The government will redirect your money for you. And, if you take that route, you give up control, you miss out on making a meaningful impact, and your legacy becomes a question mark.

The Impact of Taking Smart Steps Today

There are also multiple strategies that allow you to maintain effective control, while transferring those assets out of your taxable estate during your lifetime. These are the ones you need to learn about.

For example: The estate and gift tax is levied on the market value of the assets which are transferred. If you can somehow reduce the market value of those assets, then you can reduce the tax. The estate and gift tax is levied on assets that are transferred by gift or by bequest. If you can somehow transfer those assets by utilizing some other type of method of transferring those assets, then you can avoid estate and gift taxes on the transfer.

If the appreciation on those assets transferred can be moved out of your taxable estate, the appreciation of those assets will not be subject to estate and gift tax.

It is not only possible but very practical to substantially lessen the impact of estate and gift taxes on your accumulated wealth, and at the same time continue to control your wealth no matter who owns it or where it is. Control assures your wealth will go to the right people and places at the right time and in the right manner—in turn creating the right meaning for you.

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