Too Wealthy to Enjoy Estate Tax Breaks?

1:16 pm Uncategorized

raining money 150x150 Too Wealthy to Enjoy Estate Tax Breaks?A New York Times article last Friday said that some wealth advisers are reporting their most wealthy clients are hesitant to take advantage of the new estate tax laws passed last December, which can be a problem since those breaks are only scheduled to last two years and some of the more complicated structures take up to a year to set up.

According to the article, there are two main reasons why rich Americans are hesitating: not wanting to make assets they may need later harder to access, and a fear of ruining the lives of their children and grandchildren by giving them too much, too soon.

One wealthy Floridian said that he would probably use the $10 million gift tax exemption he and his wife enjoy to transfer money to children and grandchildren, but in a way that still incentivizes the younger family members to “keep their noses to the grindstone.”

Another wealthy client wants to take advantage of the $10 million gift tax exemption by putting his $9 million vacation home in trust for his children.

A California entrepreneur is trying to determine the right trust vehicles that will allow him to build in incentives for his children and grandchildren, saying that his main concern is ruining his kids and grandkids by giving them too much money to handle all at once.

Contact us today and let our Newport Beach law firm help you with all your financial planning needs.


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