Have you ever wished to leave a lasting impression on future generations and establish a legacy for your family? Generational wealth planning is the secret to reaching this objective.. With the right estate planning strategies, you may ensure that your legacy endures long after your passing.
Prepare for Estate Tax Liquidity
If not properly arranged for, estate taxes can place a heavy financial burden on your heirs.
Estate taxes can leave your heirs with significant debts that must be settled before they can receive any assets, depending on the size of your estate and other factors including income levels and asset distribution. Without the necessary liquidity, they may be forced to quickly liquidate assets in order to cover the costs. To prevent this situation, it’s critical to make plans for estate tax liquidity.
One way to do this is by purchasing life insurance. Life insurance provides the necessary liquidity your heirs need to pay estate taxes without having to sell any assets. Another option is setting up an irrevocable life insurance trust (ILIT). An ILIT is a trust that owns a life insurance policy on your life, and it can be an invaluable tool in estate tax planning. It can also manage and distribute the proceeds that are paid out upon the insured’s death, according to the insured’s wishes.
Boost Your Gifting
Planning for generational wealth includes gifting. You can greatly lower the size of your estate and your estate tax liabilities by transferring assets while you are still living. This is a great approach to guarantee that your legacy endures through the generations. Family limited partnerships (FLPs) are a useful tool for boosting gifting and ensuring that your heirs receive the benefits of the asset transfer.
Consider Trusts
Trusts can be an essential tool in generational wealth planning. They offer a range of benefits, such as asset protection, estate tax reductions, and the ability to ensure that assets are distributed according to your wishes. Trusts are particularly beneficial for preserving generational wealth because they allow you to transfer assets to your heirs without incurring estate taxes for several generations. Two of the most popular types of trusts are dynasty trusts and charitable lead annuity trusts (CLATs).
Talk to our Financial Advisors
Are you looking to build generational wealth? Our professional planning services at Robert Emmer with Silversage can provide the advice and guidance you need to ensure your family’s financial success. We understand the importance of setting up a strong foundation for long-term prosperity, which is why we offer comprehensive estate planning, investment strategies, retirement planning, tax optimization, gifting strategies, and more. Our team of experienced advisors can help guide you through the process. With our help, you can create an effective plan tailored specifically for your needs so that your legacy will live on.
Our goal is to provide you with financial confidence to relieve your stress and worry. Together, we can build generational wealth.
Leave an enduring legacy for your family. Contact us today to learn more about how we can help you build generational wealth!
While we are familiar with the legal/tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.