Lifetime Wealth Transfer

Strategies for transferring wealth during lifetime are numerous and complex. RWA’s team of professionals are experienced in advising about options that will help achieve your goals.

Lifetime Wealth Transfer

Managing the transfer of wealth to others and balancing the needs of different beneficiaries with the complexity of the tax system can be a challenging task. RWA has deep expertise with the planning and implementation of structures and strategies for passing wealth to successive generations and other beneficiaries in a tax efficient manner.

You have a variety of gifting strategies and wealth transfer tools that can help you distribute your assets to your family and other beneficiaries. Some of these strategies use valuation and leveraging techniques to shift future appreciation to other family members. Other strategies integrate charitable planning with the goal of providing income or transferring assets to your family. A third set of strategies focuses on efficient planning with specific assets such as life insurance and real estate. Other techniques focus on a particular objective such as the financing of your family’s higher education needs.

Life insurance Owned by an Irrevocable Trust

Funding an irrevocable trust with permanent life insurance can be a very tax-efficient way to transfer wealth to heirs. During the insured’s lifetime, increases in the cash value of a life insurance policy are not subject to income tax. When the insured dies, the life insurance pays out a death benefit that can be a multiple of the amount paid in premiums. This death benefit is not subject to income tax when received. With a life insurance trust that is properly structured and properly administered, the death benefit will also not be subject to estate tax at the insured’s death. Accordingly, by holding life insurance through an irrevocable trust, you can transfer significant assets to heirs entirely free of both income and estate tax.

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