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👉 “How do we protect our kids from a massive estate or inheritance tax bill when we pass away?”
👉 “How do we protect our kids from a massive estate or inheritance tax bill when we pass away?” Great question. This is one of the biggest worries particularly from our older clients. Consider this: an Optional Disclaimer Trust (ODT) Bill and Cynthia had about $10 million. They were anxious about their estate tax liability when they passed. So we set up an ODT so that the trust would be established upon first death. Here’s how it works: Let’s say Bill dies first and his will states that he wants to create an ODT upon his death. Cynthia then has an option to decide how much to add to the ODT. Lots of flexibility at a time when clients need it most. Example: • Cynthia adds $6M into the trust • She keeps $4M to support her lifestyle and raise the kids • The $6M inside the trust then continues to grow outside her taxable estate. Where the kids save money is in some states, PA for example, the kids would pay an inheritance tax once on the $6M (about $270k), resulting in net trust assets of $5.73M at Bill’s death. If that money then was to grow 8% average/year for 30–40 years, there could potentially be $60M+ at her death that has already been taxed. But because the money is now in the trust, they will not have to pay the tax again when Cynthia dies. That difference can mean over $2 million in tax savings. The real power isn’t just the math. It’s also about the flexibility. And not being forced to lock in decisions today. Smart planning isn’t about predicting the future. It’s about giving your family options when they need them most. Work with your financial planner to see what the best approach might be for you and your family. #EstatePlanning #WealthStrategy #FamilyLegacy #TaxPlanning #HighNetWorth #FinancialPlanning #GenerationalWealth #RetirementPlanning #LegacyPlanning #WealthProtection Rate of return are hypothetical, are provided for illustrative purposes only, and do not reflect the performance of an actual investment. Individual circumstances may vary. Osaic Wealth, Inc. and its representatives do not provide tax or legal advice; therefore it is important to coordinate with your legal or tax advisor regarding your specific situation.
Thinking about selling a business? The amount you can bank on might surprise you.
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Thinking about selling a business? The amount you can bank on might surprise you.
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