Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

September/October 2024

Minimize The Estate Tax Bit with an IDGT

Real estate investment, Buy, own, and sell properties for profit. Cash flow, appreciation, tax advantages. Research, strategy, Real estate investment yields financial rewards. real estate market

The current favorable estate tax exemption amount is scheduled to expire on December 31, 2025, unless Congress acts to extend it or make it permanent. Without action, the exemption amount will revert from $13.61 to $5.6 million per individual, adjusted for inflation. If this could impact you, consider transferring assets out of your estate starting now. With this in mind, this issue begins a series of trust strategies that may help minimize estate tax.


Short Definition
Intentionally defective grantor trusts (IDTs) can transfer wealth to beneficiaries while minimizing estate tax, however the grantor continues to pay income taxes on transferred assets.


Setting It Up
Using your available lifetime estate-and gift-tax exclusion, you, the grantor, irrevocably transfer assets you expect to appreciate to the IDGT with no federal gift-tax consequences. Be aware that after the transfer, you can no longer financially benefit from those assets. If the value of the gift exceeds your available tax exclusion, you may sell the asset to the trust on an installment sale basis for a long-term note (say 20 years) and incur no capital gains due to the trust’s irrevocable status. As the assets held in the trust value grow, estate tax on the growth may be avoided for multiple generations.


Intentionally defective grantor trusts (IDGT) aren’t for every high-net-worth individual. Your trusted tax and legal professionals can determine if one might be appropriate for you.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.