Here is your copy of the most recent Family Wealth Compass.
This publication offers a timely roundup of estate and trust planning tips, information and news, courtesy of Gunster's private wealth services attorneys; please contact any team member for more information.
In this latest issue, you'll find information on the following topics:
Utilizing trusts in your estate plan
According to a recent study, trillions of dollars are expected to be transferred from high net worth individuals upon their death to the next generation.
Whether you consider yourself a high net worth individual or not, now is a good time to revisit your generational transfer plan, especially with an eye toward utilizing trusts in connection with your transfer plan.
What will President Obama's proposed tax plan cost you?
The president's proposed tax plan contains tax increases for high income individuals and financial firms that, if passed, are estimated to raise $320 billion over the next 10 years. This new revenue is intended to offset the cost of providing tax credits to "middle class" families.
Under the proposed plan, the president gives special attention to the capital gains tax. The application of a capital gains tax to the gift of assets could easily reduce the overall value of many gifting strategies.
Same-sex marriage comes with benefits
Legally married same-sex couples can now file a joint federal income tax return, which is generally preferable if one spouse earns significantly more annual income than the other.
Likewise, married same-sex couples can now own their home as "tenants by the entirety," which affords added protection against creditors (except in the case of joint debts). In Florida, they can even apply for a homestead exemption on their primary in-state residence, which grants spousal benefits to a surviving spouse.
Estate planning 101
Remember, your will and revocable trust do not cover all of your assets.
You must name beneficiaries under life insurance policies, retirement plans, IRAs and pension plans. These interests do not pass by will or revocable trust and play an important part in your planning strategy.
You may want to consider holding your insurance policies in an irrevocable life insurance trust and not in your own name. Otherwise, the insurance proceeds will first be taxed to your estate, thereby reducing the amount distributed to your beneficiaries.
