What Is a Family Wealth Trust?

You have to preserve your family wealth for the benefit of succeeding generations if you are planning your estate as a very successful individual. The estate tax presents a looming threat to your financial legacy. There is no state-level estate tax in California, and we are fortunate because some states do impose death taxes on the state level. However, you do have to be concerned about the federal estate tax as a California resident. This tax can have a considerable impact on the financial future of your family, because it carries a 40 percent maximum rate. It is applicable on asset transfers that exceed $5.43 million. This is the amount of the exclusion during the current calendar year, but there are annual adjustments to account for inflation. When you are considering the potential impact of the federal estate tax, you should be aware of the unlimited marital deduction. The estate tax is not applicable on asset transfers between spouses, even if the transfers exceed $5.43 million.


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