Wealth and Financial Mangement
Family estate planning involves the creation of a plan supported by legal documents, which avoids loss of family assets through taxation, government bureaucracy, and undesirable legal processes. A child or grandchild's divorce, an unintended inheritance by non-family members, a suit by a creditor, and an egregious tax system greatly inhibit the accumulation and preservation of family wealth. A proper and well monitored estate plan can protect against these threats. Furthermore, values concerning money, work ethic, and other matters of tradition can be instilled with a proper and well structured estate plan.
More and more often estate plans are extending over several generations to achieve optimum use of available exemptions and planning opportunities. We pay taxes all of our lives and accumulate wealth, which we often characterize as our principal. Federal and state income, excise, sales, property, and other taxes directly impact our ability to accumulate this principal. At death, an unexpected tax on this accumulated principal is imposed by federal and state governments to prevent us from giving this principal to our heirs. When combined, these taxes can result in a total tax exceeding 69% of the income we earn over our lifetimes. This occurs, however, not only in ours, but our children's, grandchildren's, etc., generations. Sadly, few people use exemptions that are available to avoid some, if not all, of these taxes.
"Money can do more damage than good".... "You really never know someone until you share an inheritance with them".... "The vast majority of estate and tax plans of people today waste various tax exemptions and expose wealth to reach by non-family members"....
These common quotes clearly describe the experiences of some, and how deficient estate plans can adversely impact the preservation of our traditional wealth and values.
Trusts are often the heart of a family's estate plan. Other vehicles and techniques, however, also exist. A trust can preserve tax exemptions, foster the preservation of family values, and achieve an umbrella of asset protection over several generations of accumulated wealth. Other entities and techniques, however, may be used in conjunction with trusts to promote both income and estate tax savings, management, and organizations of a family's estate plan - a plan that can completely and comprehensively serve the long-term legal and tax reduction objectives of a family, while promoting the preservation of family wealth and values.
asset protection
Proper planning often involves consideration of methods to protect your wealth from the reach of unfriendly hands. Whether wealth is exposed to dissipation through divorce, elective share rights of a spouse at death, creditors, or government taxation, there is generally an ability to obtain protection. This protection can also be extended to children, grandchildren, and others who may inherit from you.
Common methods to achieve a level of asset protection incorporate the use of corporations, trusts, or family limited partnerships. Other methods may be unique to particular federal or state law, where retirement plans, annuities, jointly owned property with a spouse, or homestead property may offer a degree of asset protection if appropriate in your circumstances.
Asset protection considerations, however, need to be viewed in the context of an overall plan. Title to assets will generally determine the level of protection that exists, but the title will commonly also determine who inherits the property, how the property will be managed in the event of death or incapacity, and the level of tax exposure that will exist. Therefore, careful thought and consideration of many issues must be undertaken when implementing an asset protection plan.
Oversight & Integration
The perfect plan will fail its intended purpose if not properly implemented. The impact of this failure can be quite substantial with the consequences generally being hundreds of thousands if not millions of dollars of potential loss.
We have found that some clients are able to properly implement plans and make decisions, while others are not. Some estate planning can involve complex analysis and understanding to achieve its intended purpose. Other planning may involve an evaluation of risk versus reward, much like many businesspersons make on a periodic basis. After all, the government does not make it easy to save millions of dollars of tax.
Decisions have to be made. Once made, action needs to be taken. Once taken, the consequences may need to be monitored.
Our firm has married the disciplines of attorneys, accountants, and legal assistants to create, implement, and terminate estate, financial, and business plans for our clients. We have learned the needs of our clients over many years of service and we have grown our firm to meet these needs. We are able to tailor our services to meet most client needs.
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Contact Our Offices at: |
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Jupiter, FL: 561-747-7300 Stuart, FL: 772-223-0700 Toll Free: 800-747-3113 |
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Jupiter :: Palm Beach Gardens :: Stuart :: Tequesta :: Hobe Sound :: Vero Beach |
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The content of this site is general and should not be relied upon without review of your specific circumstances by competent legal counsel. Reliance on the information herein is at your own risk, as it expresses no opinion by the firm on your specific circumstances or legal needs. An attorney client relationship is not created through the information provided herein. This site and its content is meant to alert you to legal services, issues, and planning measures that may be appropriate for you, and is not a substitute for an attorney client relationship where specific advice is provided. Calculations and exemption amounts illustrated are changing and should be considered inaccurate and only examples of results that may be achieved. |
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