Strategies for Transferring Your Wealth
Changes in tax and estate law have brought about new thinking about passing on assets during your lifetime, thinking that goes beyond just “giving your way out of estate taxes.”
Lifetime Gifting Strategies
When planning for the transfer of your wealth, you’ll likely be faced with an array of options. Whether you are leaving a treasured asset to a loved one or a legacy of trusts that will be used for future generations, specific strategies can be implemented to make the most of your assets.
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Dynasty Trusts
There are many reasons to make gifts to younger family members in trust for their benefit rather than outright. Some of the benefits include asset protection, tax planning, and family control. When creating a trust for many generations, one common strategy is a dynasty trust. A dynasty trust is any trust that lasts longer than one generation below the grantor’s generation. Dynasty trusts have two unique aspects that make them an attractive wealth transfer strategy
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Real Estate Transfer Strategies
Depending on your circumstances, gift planning with real estate can be an effective way to take advantage of your exemption amount without hurting your liquidity. Of course, there are many items to consider when transferring a piece of property to others, including the right structure, the terms, and the tax benefits. Fortunately, a few key strategies may help you transfer real estate in a tax efficient manner.
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Flexibility in Trusts
While federal estate, gift and GST tax exemption amounts provide a significant incentive to review existing estate planning and consider implementing new planning strategies, it’s critical to consider the need for flexibility so that trusts can adapt to changing times, circumstances and tax laws. Maximum flexibility can help the next time the law or family circumstances change – and they will.
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Additional resources
Please contact a CIBC Private Wealth advisor for more information.