Creating a Will 

The first step in wealth preservation is to create a will. A will is a legal document that details how your property should be distributed after you pass away. A well-drafted will is the only way to ensure that your wishes are respected. A will can also provide clarity, preventing possible disputes among beneficiaries and heirs. A will ensures that your property is distributed according to your intentions and personal relationships.

Purchase Life Insurance 

Contrary to what many people think, life insurance is for far more than just an unexpected death. A life insurance policy can provide long-term protection for your family’s wealth from paying estate taxes to covering funeral expenses to funding business succession plans to settling debts. There are many different types of life insurance policies for wealth preservation, including:

• Term life insurance
• Whole life insurance
• Universal life insurance

Create a Trust 

When trying to preserve your wealth, trusts are an essential part of estate planning. To establish a trust, you must draft a legal document and then fund the trust by placing property in it, which requires transferring title of the asset. There are many different types of trusts that can help you preserve your wealth, including:

• Revocable trusts
• Irrevocable trusts
• Special needs trusts
• Charitable trusts
• Life insurance trusts

Investment Diversification 

Diversifying your investments is a critical part of wealth preservation. Diversification refers to making investments across many different vehicles to minimize your exposure to any single risk or investment. Investment diversification does not necessarily increase the performance of any single investment but instead, it limits the amount of volatility to your portfolio. When you invest in different areas that will all respond differently to the same event, you reduce the likelihood of your investments all performing poorly at the same time. A few of the most common types of investments to consider are as follows:

• Bonds
• Equities
• Real estate
• Precious metals
• Cash equivalents

Donating and Gifting 

By donating and gifting your wealth and property during your lifetime, you can have a positive impact on others, leave a lasting legacy, and reduce potential estate taxes. There are certain laws pertaining to gifting property, however, so it is important to work with an attorney before using this strategy.

Our Wealth Preservation Lawyer in St. Petersburg Can Help You Choose the Right Strategy 

There are many options when trying to protect the wealth you have worked for your entire life. At Legacy Protection Lawyers, LLP, our St. Petersburg wealth preservation lawyer can advise on the strategy that is right for you to ensure you and your family are fully protected. Call us today at 727-471-5868 or contact us online to request a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Exemptions from Gift and Estate Taxes Have Increased. 

Starting January 1, 2019, the $11.18 lifetime tax exemption for Gifts and Estate Taxes increased to $11.4 million due to an adjustment for inflation. Because of this adjustment, individuals who already used their $11.18 million lifetime exemption now can gift an additional $220,000 in 2019 without having to pay a federal gift tax. It is generally advisable to gift assets that have a high tax cost basis to avoid or minimize income taxes on a subsequent sale by the donee. Be sure to speak with an estate planning expert to see which assets you can gift to take advantage of the new higher limit. 

Gift Up to $15,000 Per Recipient Tax-Free 

In 2019, married couples can gift up to $30,000 tax-free per recipient. Non-married individuals can gift up to $15,000 per recipient without triggering the gift tax. Gifts to a spouse in any amount are tax-free. Annual tax-free gifts to a spouse who is not a US citizen increased to $155,000. 

Bunch Charitable Donations into a Single Tax Year 

Taxpayers now can deduct charitable cash donations equal to 60% of their adjusted gross income. This deduction limitation increased by 10%. If you’ll have a tax burden this year, you may want to bump up your charitable giving to offset your tax liability. 

Speak with a Tax Professional in Your State 

Florida has its own set of tax and estate planning laws. In order to take advantage of every legal way to save money on tax liability and protect your assets upon your passing, you need to speak with a local legal professional who can offer asset protection techniques to help you build and pass on wealth successfully.

Evaluate Whether You Should Update Old Trusts 

When is the last time you looked over the terms of your trust? Perhaps it’s time to reevaluate your trust in terms of changes in the tax laws. In some cases it might be beneficial to decant your trust or pour assets from your trust into a new trust with better terms. You may even be able to do so without court approval.

Have you had your will, trust and/or charitable donation plans reviewed since the Tax Cuts and Jobs Act took effect? Would you like an estate planning attorney to review the terms of your trust or estimate your tax liability? Contact the St. Petersburg wealth preservation attorneys at Legacy Protection Lawyers, LLP today for help.

Resource:

congress.gov/bill/115th-congress/house-bill/1