Charles Marsala Explains: Creating a plan for effective wealth transfer

Charles Marsala October 9, 2014 0
Charles Marsala Explains: Creating a plan for effective wealth transfer

Creating a Plan for Effective Wealth Transfer

Investors often concentrate on accumulating assets, but how much time and energy is spent on preserving those hard-earned assets for future generations? Not nearly enough. Have you considered any of the following strategies to help pass along more of your estate to your heirs?

Effective estate planning is an ongoing process — often best begun at a much younger age. At the very least, you should have a will to ensure that your final wishes are known.

Life insurance may be a tax-efficient way of transferring accumulated wealth. Some types of policies offer current tax benefits and also reduce or eliminate taxes for beneficiaries. And life insurance may also increase the amount passed on to your heirs.

Plus, it may also help owners of highly appreciated property or small businesses retain their assets, rather than be forced to sell those assets to pay Uncle Sam.

Trusts offer benefits.  A grantor retained annuity trust (GRAT), for example, allows you to transfer assets to an irrevocable trust and then receive a yearly annuity for a specific number of years. Once the GRAT is dissolved, the remaining assets pass to the beneficiaries, usually free of estate and gift taxes.

Charitable remainder trusts are effective. They can be arranged so that you and a named beneficiary — receive tax benefits and, in some cases, income during life. What’s more, the trust also benefits a charity of your choice.

While this article is not a complete summary of all information available to make an investment decision, investors should carefully consider their tax situation as well as risks such as asset control prior to investing

Effective wealth transfer is a key component of financial planning, requiring the consultation of a financial advisor.

About the author:  Charles Marsala is a Financial Advisor with Benchmark Investment Group with Securities offered through LPL Financial, a member FINRA/SIPC.  He can be contacted at




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