It has probably taken you a number of years to build up your small business empire. But now that you’re closing in on retirement, you’d like to preserve most of your assets for your family without paying an arm and a leg in taxes.
Strategy: Set up a “dynasty trust.” Unlike a typical trust that lasts for a limited term or ends upon a specified event, a dynasty trust may span several generations without triggering adverse tax consequences.
Besides the long-lasting tax benefits, the trust may be used to protect your wealth under conditions you personally impose (see below).
When should you establish a dynasty trust? There’s no time like the present. You can take advantage of a $5 million estate tax exemption written permanently into the tax code. The exemption, which is indexed annually for inflation, is $5.43 million in 2015 (up from $5.34 million in 2014).
How a dynasty trust works
Briefly stated, you transfer assets to a tru...(register to read more)
- Small Business Tax Deduction Strategies No matches