Summary
The second and third trusts that are written into the terms of Norman's will are to come into existence later, at the death of his wife. Those trusts are for his children. When his wife dies, the wealth that remains in her trust will be divided into two shares and transferred into two new trusts, half and half. One trust will be for his son, Norman Junior. The other trust will be for his daughter, Jane. The wealth in each of the two trusts will be invested to generate income.
Norman's wife signed a will of her own on the same day as her husband. If she is the second to die, it will divide the wealth in her name at her death into two equal shares, in two trusts, one for Junior and one for Jane.Does your family wealth exceed those thresholds? The strategy generates bigger tax savings with bigger wealth, but there is a ceiling. The tax savings max out at approximately $20,000 per child per year when the inheritance reaches $2.4 million per child. Families with higher wealth levels than that will need to look at more advanced tax avoidance strategies.See the full content of this document
Extract
Springboarding a Tax-Saving Strategy
Norman Smith signed his last will and testament on a snowy Thursday this winter. When he dies, the terms of his will are going to create not one, not two, but three trusts.
Here is the plan.The fi...See the full content of this document
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