Control Everything, Own Nothing
Our trust and estate lawyers go above and beyond traditional estate planning in that we believe that family wealth should be passed down on a multi-generational level, rather than simply to the next generation.
Through the use of instruments such as dynasty trusts, IRA trusts and irrevocable life insurance trusts, the attorneys of Avelino Nitkewicz LLP emphasize the creation and preservation of legacy wealth. We represent clients in Summit, New Providence, Madison and other communities in north-central New Jersey.
Dynasty Trusts
Did you ever ask yourself how families such as the Rockefellers and the Kennedys have retained their wealth for generations? The answer is dynasty trusts.
A dynasty trust allows money to stay within a family for generations while being protected from estate tax, creditors and divorce. A dynasty trust allows you to benefit from the advice of John D. Rockefeller: Control everything, own nothing.
Our lawyers will create a dynasty trust to hold real estate, stock and other property. A friendly trustee (who is not a beneficiary) is appointed to carry out the terms of the trust. Beneficiaries such as children and grandchildren have a limited power of appointment to elect new trustees through the years, thereby ensuring a friendly trustee is carrying out the trust terms.
A dynasty trust is not only for the wealthy. Why wouldn't everyone who has life insurance or an IRA want to pass the proceeds on for multiple generations with estate tax and creditor protection?
IRA Trusts
The IRA trust is the biggest family wealth creator—yet most people don't even know about it.
If you have a $300,000 IRA account, you can take a lump sum distribution and end up paying 40 to 50 percent in taxes. An alternative is to stretch it out and take the required minimum distribution for your life expectancy. The money in the IRA account will continue to grow on a tax-deferred basis at a faster rate than you take it out, creating wealth that will last for generations.
Irrevocable Life Insurance Trusts
Any life insurance policy that is worth more than $250,000 should be owned by an irrevocable life insurance trust. If you or your spouse own, or are the beneficiaries of a life insurance policy, the insurance proceeds are not taxable to your beneficiaries, however they are included in your estate and could result in the need for your heirs to pay 45 percent of your estate in federal estate taxes.*
Free Lawyer Consultation
For more information or to schedule a free initial consultation with an attorney at Avelino Nitkewicz LLP, call 888-334-7310 or fill out the contact form on this Web site.
