Creating your wealth transfer strategy

You enjoy your wealth. But you also want to use it to make difference—for your family, your community and the charities and causes that mean the most to you. Having a smart charitable giving plan can also make a difference in your financial life now. And help you preserve more of your wealth for future generations. We provide advice and guidance for making gifts that balance your good intentions with the benefits of different tax and wealth preservation strategies.

Estate taxes can significantly erode wealth across generations. Added to a top federal rate of 40%, state-level estate taxes can push the effective rate to around 50%.

Who, what, when and how

Answering these questions can help you choose the right strategic path:

  • Who: Is the primary beneficiary of your wealth going to be your family or charity? 
  • What: Do you want to transfer 100% of your wealth, or just future earnings and income?
  • When: Do you want to transfer your wealth only after you die, or would you want to give some away during your lifetime?
  • How: Do you want to make an outright gift and give up control, or set up a trust to keep some control over how your wealth is distributed and spent?

Navigating the transfer tax spectrum

Once you’ve mapped your objectives, we can help you put together a combination of techniques to steer your wealth to your chosen beneficiaries—and around the tax obstacles.

Transfers excluded from the gift tax system:

  • $15,000 per individual beneficiary
  • For certain qualified education and medical expenses

Transfers that benefit from tax exemptions:

  • Gift tax exemption of up to $11,180,000 per donor
  • Generation-Skipping Transfer (GST) and estate tax exemptions of up to $11,180,000 per donor

Transfers using discount strategies:

  • Family Limited Partnership (FLP)
  • Family Limited Liability Company (FLLC)
  • Delaware Statutory Trust (DST)

Taxable transfers:

  • Pay gift tax now rather than estate tax later

What are the right wealth transfer strategies for you? We can help you find the answers. 

By using certain strategies to make gifts during your lifetime, you can help to minimize transfer taxes

In the first example, a testamentary transfer of $1,000,000 is subject to a 40% estate tax, resulting in $600,000 for the family and $400,000 in taxes. In the second pie, the $1,000,000 is made a lifetime gift, and is therefore taxed only at the 28.6% gift tax rate. This gives $714,286 to the family and just $285,714 to the government in taxes.
  • Creating your wealth transfer strategy
    Having a smart charitable giving plan can make a difference in your financial life. Now and for future generations. We provide advice and guidance that balance your good intentions with the benefits of different tax and wealth preservation strategies.