Preserving wealth can become increasingly difficult as it shifts through generations. In order to protect the legacy that you have worked so hard for, it is important to understand the challenges that you may face, and how you can overcome them.
In 2019 the tax code provides that every penny in excess of $11.4 million dollars per person ($22.8 million for a married couple) is taxed upon death at rates that rapidly escalate to 40%. For the truly wealthy, a $11.4 million-dollar estate tax exclusion doesn’t begin to preserve the substance of what you’ve worked so hard to accumulate.
This doubled exemption remains in effect until December 31, 2025, at which time the law sunsets and the exemptions revert to the $5 million level (indexed for inflation).
Poor financial planning has been a major contributor to many wealthy families experiencing a significant reduction in wealth over time.
Having the correct financial plan is crucial to give the legacy that you have created the opportunity to shift beyond wealth preservation and into growth and transformation.