The Best Ways to Leave a Gift Via Trust

The Best Ways to Leave a Gift Via Trust

If you give a gift to a family member or friend that exceeds a specific value, it can be taxed. Because of this, some people decide to leave gifts in the form of a trust. It allows you to leave much more money to a person without a portion of it going to the government. Here are some of the best ways to leave a gift via trust to your loved ones.

• IDGT – The intentionally defective grantor trust is used to leave the family business to another household member, and it protects the beneficiary from the company’s creditors.
• QPRT – A qualified personal residence trust is a great way to transfer a house to your family when you don’t want them to pay the full market value. Your family will receive asset protection as well as tax benefits.
• CRT – A charitable remainder trust is for when you want to leave the gift to a charity rather than an individual. It also provides tax benefits to your estate.
• Gift trust – A gift trust with annual exclusions allows you to give family members the maximum exempt amount per year with the rest going into a trust that will be dispensed later. While the family doesn’t get access to all the funds immediately, they also don’t have to pay half of it in taxes.

Generous Estate Planning Options in Southern California

For more generous estate planning options in southern California, contact the estate planning experts at Petrov Law Firm by calling 619-344-0360. Our experienced attorneys can help you leave assets to your heirs with the minimal tax burden, so your family enjoys your assets rather than the government.