In the past, estate planning strategies largely focused on maximizing your annual exemption gifts. However, sweeping tax reform makes it all the more important to set aside time to talk about new opportunities in the estate planning realm.

The previous approach enabled younger generations to own assets that would appreciate in value the most, while also minimizing the values on gift tax purposes on transferred assets. Investing for heirs, however, makes more sense in light of the fact that the estate tax exemptions are now $11.2 million in 2018. This allows many well-off families to avoid estate taxation entirely. The best way to implement an investment strategy that passes on value to future generations is to keep assets in your own name, but invest them as if you are holding them on behalf of an heir. This is a more aggressive investment strategy than many people are used to in the past, but the truth is that younger generations can absorb the shocks associated with market volatility much better than elderly individuals can. This is why it makes sense to pursue the right strategy with the help of an experienced lawyer in Pasadena.

 

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