When you learn to transfer wealth successfully you minimize family confusion and tax implications when you’re gone. Estate plans are customized and there are various wealth transfer strategies that can be used to preserve wealth and help loved ones avoid the probate process. Trusts are popular because they allow for complete control over the distribution of assets while minimizing the impact of taxes on the estate. Most people prefer a revokable living trust over an irrevocable trust because they are flexible. The creator of the trust can make changes or cancel it at any time.
Beyond trusts, giving to others while you’re alive is a meaningful way to transfer wealth that allows you to maintain control over where your assets are directed. You can pay for college educations and medical bills. You can gift cash, stocks, bonds, and other assets to friends and family. The annual exclusion for gifts is any amount up to $19000 per person for 2025. Cash donations to qualifying charitable organizations will help reduce your taxable income and transfer some of your wealth to a good cause.
You work hard your entire life to build wealth and provide for your family. Estate planning ensures your wishes are carried out and your loved ones know what to do if ever you become incapacitated and when you die. A will is an essential legal document in an estate plan yet it isn’t enough to prevent family members from fighting over assets or from ending up in probate.
With the numerous steps involved with estate planning, the simplest way for you to learn about transferring wealth is to call us. At Alloy Wealth Management, our estate planning services include an evaluation of insurance. Insurance is often overlooked in estate planning, yet it may be useful when the goal is to transfer wealth with tax-efficiency. Call 800-689-3935 to schedule an appointment.