You’ve worked hard to build a legacy that spans multiple generations. But what your loved ones inherit may be subject to taxes — or worse, divorce or lawsuit — that would otherwise take away from what you’ve built. Consider a situation where you live in California, where there is no estate tax, but your children are living in New York, which does have an estate tax. Passing assets to them outright that will be passed down to your grandchildren later would incur that tax, potentially even twice. That’s where a Generational Wealth Protection Trust comes in as part of your overall Asset Protection Plan. WHAT IS A GENERATIONAL WEALTH PROTECTION TRUST? The Generational Wealth Protection Trust is a trust we’ve helped clients structure to protect their assets. The trust shields the inheritance you’ve set aside for future generations from the uncertainties in life and allows you to avoid out-of- state estate taxes that would otherwise lessen the inheritance. LIMITED POWER OF APPOINTMENT The Generational Wealth Protection Trust can be set up with a limited power of appointment at death. This allows you to account for generations beyond just your children by limiting who can receive your children’s inheritance to a class of individuals (such as your grandchildren) or specific people. Furthermore, if your children live in New York or another state with an estate tax, you can provide them with limited power of appointment under the trust, meaning they can choose only one person to receive their inheritance through your Trust. Because of this limit, the assets are not subject to the estate taxes of the person (i.e., your children) designated as the power holder within the trust. So, rather than having them hold general powers in the trust and exposing the assets to their applicable estate taxes in New York, you can bypass those taxes if done right. Your children can even exercise their limited power of appointment and direct the inheritance in your Trust to the child’s own Revocable Living Trust. Their Trust would have Generational Wealth Trust provisions, thereby protecting your inheritances into perpetuity if future generations do the same — hence where the name comes from. PROTECT YOUR LEGACY WITH DAHL LAW GROUP The Generational Wealth Protection Trust was created by the experienced team at Dahl Law Group. When you’re ready to protect your legacy for generations, contact Dahl Law Group at our offices in Sacramento and San Diego. Generational Wealth Protection Trusts Essential Insurance Coverages for California Real Estate
Did You Know? Owls have asymmetrical ears , which help them pinpoint sounds from different elevations. It’s true! Humans aren’t the only ones who really rely on listening! Check out these interesting facts about animals and their listening abilities. Elephants can hear low-frequency sounds and communicate over long distances using infrasound, which humans can’t hear. Bats use echolocation , creating high-pitched sounds they use to navigate and locate their prey in the dark.
Goldfish do not have outer ears but can still detect sound through vibrations in the water.
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