Wealth Transfer

Wealth Transfer

What You Need to Know About Wealth Transfer and Gifting

As you approach your later years, you likely have concerns about your wealth staying in the family or going to causes that matter to you. Macino Financial Services has years of experience assisting clients with their wealth transfer & gifting needs. We would be honored to assist you in this area.

Distribute Assets by Creating a Will and Naming Beneficiaries

Unfortunately, you have no control over your wealth transfer and gifting if you pass away without a will or trust in place. State law determines the distribution of your assets instead. We are comfortable to work with, even when creating a will. We actively listen to ensure that your will truly reflects your desires.

At this stage of financial planning, it’s also a good idea to make sure that your retirement plans, annuities, life insurance policies, and other investments are payable to the “named” beneficiary of your choice. This is especially important in Ohio where no beneficiary life insurance laws exist. Additionally, different laws are in place depending on whether you have a 401K or individual retirement account (IRA) that we will clarify for you.

Providing Gifts to Individuals

Gifting gives you the opportunity to transfer part of your assets to beneficiaries during your lifetime to reduce your taxable income. By implementing sophisticated gifting techniques, you can provide ongoing income for yourself or your heirs, pay for your child’s education, or leverage your annual exclusion gifts. An individual can gift someone up to $14,000 and a married couple can gift up to $28,000 without having to file a gift tax return. This is called the annual exclusion.

Using Trusts to Transfer Wealth

You can reduce estate taxes and avoid probate by transferring your wealth to one of the following:

• Irrevocable Gift Trust: This provides your beneficiaries with access to gifted funds until they reach an age you establish.
• Life Insurance Trusts: This allows you to keep the death benefit of your life insurance policy out of your estate.
• Revocable Living Trusts: This allows you to transfer wealth to your heirs more efficiently, but remains a part of your taxable estate.