PLANNING FOR WEALTH TRANSFER

^{By Louis Green, CFA®, CFP®, CRPS®}

Planning for Wealth Transfers

Family Meetings

Annual family meetings are a great way to pass on your knowledge and values regarding wealth creation and protection. Consider using family meetings to teach younger family members about topics such as investments, taxes, financial planning, and which questions to ask advisors.

Estate Liquidity

You should be mindful of liquidity in your estate, especially if your estate has assets that are difficult to liquidate. We will now briefly discuss several liquidity strategies for you to consider. Consult with a tax advisor and/or estate attorney to discuss the additional requirements for any of these strategies.¹

Irrevocable Life Insurance Trust

Consider purchasing life insurance within an irrevocable life insurance trust to provide liquidity for estate taxes while removing the value of the life insurance from your estate.

6166 Deferral

Consider filing for a 6166 deferral if your closely held business is valued at over 35% of your adjusted gross estate. The 6166 deferral allows you to pay taxes and interest pertaining to the business over a 14-year period instead of the standard nine-month period.

303 Redemption

The 303 redemption will allow for capital gains treatment on the redemption of your closely held business stock by the business.

2032A Special Use Valuation

The 2032A special use valuation for farmland allows for a reduced valuation of the farmland in your estate.

Let’s Talk

Find out how Prestiq Wealth can help you create a comprehensive financial plan based on their book, 5 Steps To Retirement Planning.

LET'S TALK

All advisory services are offered through Savvy Advisors, Inc. (“Savvy Advisors”), an investment advisor registered with the Securities and Exchange Commission (“SEC”).

^{1 https://www.comerica.com/insights/wealth-management/family-and-goals/building-a-liquidity-plan.html}