The Best Estate Planning Strategies for High Net Worth Investors

Estate planning is no small feat; in fact, for most individuals, it’s an ongoing process. Even with the guidance of a team of financial and tax advisors, estate planning experts, and specialists in life insurance, annuities, and other investment alternatives, you may be shocked to learn how much of your estate could be lost to taxes. Estate tax mitigation is a key element of estate planning, but in order to be effective in minimizing tax liability, it’s vital that you understand the criteria for imposing both estate and income taxes.


In 2017, the estate tax exemption was set at $5.49 million per individual and $10.98 million for married couples. Any assets over and above these sums will typically be subject to taxation, which can reach well over 50% or more if you include the impact of any possible state estate taxes. High net worth individuals with an estate valued above these thresholds must employ a number of strategies in order to maximize the transfer of wealth to heirs and charitable interests. The good news is that only two out of every 1,000 estates will be subject to federal estate taxes this year, which is largely attributable to the efforts of expert estate planning advisors who work with high net worth investors to minimize their estate tax liability.

So, how then can you develop a solid estate planning strategy as a high net worth investor? I routinely encourage our clients to consider the approaches described below. However, before taking any sort of action, be sure to discuss strategies with your financial advisor and estate planning team. This will ensure that you make the right move for your precise priorities and requirements.

Properly Titling Assets as a High Net Worth Estate Planning Strategy

A properly structured estate should provide ample access to assets needed while you are alive without compromising your overall estate and legacy plans. While certain assets may be directly owned by you or your spouse, it is wise to make certain that other assets are safely outside your estate for estate tax purposes. Some assets such as business interests and investment portfolios, and retirement accounts will require you to maintain direct control, while other assets such as life insurance may be outside of the estate in a properly structured trust.

Estate taxes can reduce the value of your estate by 50% or more, but these taxes apply only to assets owned directly by you. By ensuring that your assets are properly titled, you’ll be better equipped for the estate planning process.

Systematically and Strategically Reducing the Size of Your Estate

While it may seem counterintuitive, reducing the size of your estate could result in a larger transfer of wealth to your heirs as you may qualify for a lower tax bracket. An effective strategy will often include developing a plan that includes the creation of trusts, reallocation of assets to children, and qualified donations, all with the goal of helping you achieve the transfer of as much of your wealth as allowable.

Additionally, strategic gifting may also be beneficial as it entails distributing up to $15,000 per recipient each year—and it is free of taxation and does not reduce your estate/gift tax exemption. This can serve as an effective method for reducing the size of your estate in a tax-free manner.

Finally, it may be possible to pay for certain expenses for your heirs, such as college tuition, without being subject to gift taxes.This is another key area to explore with your accounting and financial team as well as your estate planning advisors.

Leveraging Qualified Charitable Donations as an Estate Planning Strategy

Another estate planning strategy is to take advantage of IRA Qualified Charitable Donations (QCDs). This serves to reduce the size of your estate while guaranteeing that your funds go to the intended recipient with minimal—if any—taxes due.

QCDs are available to IRA owners who are at least 70 ½ years old. The distribution must be paid directly to the non-profit organization. Married couples can each donate up to $100,000 per year from their own IRA, for a maximum gift of up to $200,000 per year, provided they maintain separate IRAs.

Using Trusts to Transfer Wealth from a High Net Worth Estate

Trusts often become a topic of discussion during the estate planning process, but trusts are not suitable for everyone—and not all trusts offer any substantial tax sheltering. This is because financial allocations to the beneficiary are typically considered taxable income unless properly structured.

That said, there are a number of types of trust, such as living trusts and irrevocable trusts, which serve different purposes and can be useful. Living trusts offer access to assets and offer maximum control while alive, while Irrevocable trusts seek to maximize tax exemptions on the wealth they’re passing along to heirs and charities. Therefore, it’s wise to work with your financial planner and estate planning consultants to determine which trust, if any,  may be beneficial for transferring wealth in your unique situation.

Life Insurance as an Estate Planning Tool for High Net Worth Individuals

Life insurance policies can serve as a very effective technique for conveying wealth to your loved ones—and even to charities. In fact, it’s often possible to secure a life insurance policy even later in life, imparting a greater tax-free sum to the beneficiary when you pass.


For instance, a sum of $80,000 could be used to secure a life insurance policy with a payout of up to $5 million (depending upon age and health, of course). Even when taxation on a life insurance policy is taken into account, the overall sum provided to the beneficiary would be greater than the amount of money that was paid into the policy. Life insurance should definitely be explored with an estate planning and life insurance expert if you are a high net worth individual looking for estate planning tools and investment alternatives.

Choosing the Right Estate Planning Advisor

If you are concerned about choosing a trusted advisor to work on your estate plan, you are not alone. A 2016 survey found that 53% of respondents reported challenges as they sought out the advice and guidance of an estate planning professional. To complicate matters further, many other consultants may have a role in your estate planning process as well, including your financial advisors, attorneys, CPAs, and life insurance advisors. Your individual goals are central to your estate plan; choosing an advisor that you feel can help you meet your unique objectives and overcome any challenges you may encounter is critical. In my many years of advising clients, I’ve found that while every client has their own story and their own goals, maximizing wealth transfer is typically their top priority.

source: howardkayeinsurance.com

For over 55 years, the professional team of advisors at Howard Kaye Insurance has been working with clients to achieve their estate planning goals using investment alternatives such as annuities and life insurance. Our experts have devised a number of effective strategies that serve to maximize the transfer of your wealth while simultaneously limiting and minimizing tax liability. This ensures that your loved ones and the charities that are close to your heart can enjoy the maximum benefit from your estate. Our advisors are ready to discuss your goals today, so contact our team by calling 1-800-DIE-RICH.

How Does an Asbestos Lawsuit Begin?

If you or a member of your family has been diagnosed with mesothelioma, asbestos-caused lung cancer, or another asbestos-related disease, you may want to consider filing an asbestos lawsuit. Because of the clear connection between the negligent use of asbestos by US industries and mesothelioma, many people have filed lawsuits and won compensation for their injuries.

The first thing you can do to help make your asbestos lawsuit a success is to hire the best asbestos attorney you can find, one with a great deal of experience in filing asbestos lawsuits. The next thing you can do is to learn about the process so you can best help your lawyer make your case.




Collect Your Asbestos Lawsuit Documents

In order to file an asbestos lawsuit on your behalf, your attorney will need proof of your diagnosis and the state of your health, as well as the cost of your medical treatment so far. In addition, your attorney will need to know your work history, to determine where you may have been exposed to asbestos. Top-notch asbestos law firms employ experienced investigators. An investigator will use your background information to gather evidence about where you were exposed to asbestos.

If this seems like an overwhelming amount of work, especially as you are coping with a severe illness, don’t worry. A good mesothelioma attorney will go over everything with you and will be able to help gather the documents you need for your asbestos lawsuit.

Beginning Your Asbestos Lawsuit

Before beginning the formal litigation process, your attorney may approach representatives from some of the corporations responsible for your asbestos-related disease. Some parties choose to enter into settlement negotiations with the most well respected mesothelioma attorneys before a lawsuit is filed, to avoid the time and expense of going to court. Instead some corporations ask us NOT to sue them so they can settle without wasting money on their lawyers.

If any of the parties have set up an asbestos trust fund, your attorney will initiate the trust paperwork. The corporations with asbestos bankruptcy trusts can’t be named in an asbestos lawsuit. They have already admitted their liability for exposing people to asbestos and have set aside money under court supervision to compensate those who become ill with mesothelioma or other asbestos-related diseases.

The parties who don’t agree to compensate you will be named in your asbestos lawsuit. Your lawyer will draft a complaint, which states the facts of the case and identifies all the parties in the lawsuit.

Your lawyer will file the complaint and get a summons from the court to serve on the parties named in the suit. These parties, now called the defendants, must file an answer with the court within 30 days. If any of the defendants do not respond to your lawsuit within the required time, your lawyer can seek a default judgment against that party. After a default is entered, your attorney will pursue that party for compensation.

Defendants always respond by denying that they are liable for exposing you to asbestos. Some may argue that your illness is caused by other factors, such as smoking. This push back is a normal part of the litigation process. An experienced asbestos attorney will have heard all these arguments before and will know how to respond to them.

Asbestos Lawsuit Discovery

The next phase of your asbestos lawsuit is called the discovery process. During this phase, both your attorney and the attorneys for the defendants will ask for documents and other evidence about the case. The defense will want copies of your medical records. Your asbestos lawyer will ask for information about the use of products containing asbestos at different places where you worked or lived, who sold them, and what they knew.

Part of the discovery process is taking depositions. Depositions do not take place in a courtroom, but they are sworn testimony recorded by a court reporter that may be used in court during the trial.

It is likely that the defendants will ask for your deposition. This may sound scary, but it doesn’t have to be. Your lawyer will work with you beforehand to prepare you to testify and will be right by your side every minute. If your health is failing, the deposition is a chance to record your account of your asbestos exposure and illness. Later on, if you are unable to come to court to testify at trial, a recording of your deposition may be played instead,  and will become evidence.

The discovery process can take several months. At times, you may feel that your lawsuit has stalled and that nothing is happening. For much of this time, however, your legal team will actually be hard at work. They will be combing through the documents received from the defendants through discovery, looking for evidence to bolster your asbestos lawsuit.

Will Your Asbestos Lawsuit Settle or Go to Trial?

Television likes the drama of the courtroom, but most people who get sued do not. Most lawsuits end with a settlement before trial. Asbestos lawsuits are no different: more than 90%  end with a settlement and never go through trial.

The discovery process plays a big part in settlement negotiations. If the documents received through this process show that a defendant knew about the hazards of asbestos exposure and did nothing to protect you and others, that party is unlikely to win at trial. They may choose to settle with you to avoid the cost of trial, as well as the embarrassment of having their misconduct exposed.

If you are offered a settlement by one or more of the defendants in your asbestos lawsuit, your attorney will negotiate the settlement amount and will help you assess whether the offer is fair. The advantage of settling is that you will receive compensation much sooner than if your case goes to trial. If you win at trial, a jury may award you more money than you would get from a settlement. There is no guarantee, however, of winning at trial, or getting more than what was offered, so settlement may be a good idea.

Seek advice from an experienced asbestos attorney as soon as you are able. That is the best way to get your asbestos lawsuit off to a smooth start and heading to a good result.

source: kazanlaw.com

Automobile Accident Injuries: Great Tips From A Personal Injury Attorney In St. Louis

Are you a victim of an automobile accident? Have you sustained some serious injuries? If yes, do you have a feeling you deserve more than what the insurance companies are offering you? Hiring an automobile attorney in St. Louis can get you back to your feet. Apart from helping you get a higher settlement, a personal injury attorney understands the legal process than any other person, knows the exact amount your claim is worth and the best part is, they’ll save you some costs. However, to get the best out of this partnership, you need to be well acquainted with the injuries you sustained. Here are some of the typical automobile accident injuries.

Common Automobile Accident Injuries That You Must Watch Out For

1. Neck Injuries

Among the most common automobile accident injuries are neck injuries known to result from rear-end collisions. One collision might result in a serious ligament or neck muscle injuries that might force you to spend days, weeks or even months in the hospital. Some of the obvious symptoms are swellings on the neck or inability to move your neck. If any of this is your case, you need to call an attorney.

2. Chest Injuries

Chest injuries fall in the same category as neck injuries. They can also result from rear-end collision that propels your upper body to hit the steering wheel. As a result, you can break your ribs, collapse your lungs and more. This can also result in a severe internal bleeding or damage internal organs and more that requires immediate medical attention. Call an attorney or have someone call him immediately the doctor confirms this.

3. Head Injuries

 
Head injuries are among the most serious automobile accidents. If you don’t act too fast, chances that you will survive are low. Just like chest injuries, they can result from hitting the steering wheels, windows or dashboards resulting in brain injuries such as concussions or the worst, commas. If this is or was your case, call an automobile accident attorney to take you through the legal process.

Other injuries

• Back injuries: This can be the damage caused to the spinal cord
• Limb injuries: Broken bones, cut flesh or torn muscle limbs and more.

 How you’ll benefit by calling an Automobile Accident Attorney

Serious injuries require an immediate medical attention. Whether it’s a neck, a chest or a head injury, leaving it for another one hour, a day, a week or a month can result into something much bigger. Don’t stress yourself trying to convince some stubborn insurance company. Hiring an automobile accident attorney will not only help you get a payment you deserve but will also help you recover quickly by taking care of your medical bills. If you are having a hard time convincing an insurance company, don’t even waste a minute. Call an automobile accident attorney and save yourself all the trouble.

source: hoffmannpersonalinjury.com