Passing down your values and assets to future generations requires careful planning and consideration. It is not just about writing a will but crafting a legacy that benefits your loved ones for years to come. Here are two examples of multi-generational plans:
Dynasty trusts
Dynasty trusts allow families to control the distribution of assets and the transfer of wealth across generations, all while reducing or avoiding estate taxes and shielding assets from creditors and lawsuits. Dynasty trusts can also adapt to your family’s needs as they change over time.
Education trusts
Alternatively, if you would like to invest specifically in your family’s education, an education trust, such as a 529 plan, allows you to establish a special savings account that can help you save money for education costs in a tax-friendly way.
Specifically, any growth in the account is not taxed, and you do not pay taxes when you take the money out for education expenses, including college tuition, books and housing. 529 plans can also be used for some K-12 school expenses, as well as certain job-training programs.
In conclusion, both of these trusts allow you to transfer your family’s wealth over generations, but they require careful thought and planning. We would be happy to guide you through the decision-making process and then create a manageable plan that addresses your family’s specific needs and achieves your financial goals. Call us at 651-738-3433.