Wealth Transfer, The Right Way

Creating a plan that meets your estate planning and philanthropic goals with an eye toward tax efficiency.

When financial experts talk about "wealth structuring," what they're describing is a way that clients can "own their wealth and think about transferring it to others," says Lorna Sabbia, head of the Client Solutions Group. A sound wealth structuring plan also helps clients "incorporate their goals around philanthropy," and do it all in a way that takes current tax law into account.

In an interview with Steve Samuels, national director of Client Solutions and Global Practice Management, Sabbia recommends several strategies worth considering. Among them: converting a traditional IRA into a Roth IRA, which can allow you to pass along your account to heirs without mandatory distributions; making use of a trusteed IRA as a means to exercising a degree of control over the way your beneficiaries handle assets; and using life insurance to protect against market volatility's potential effects on your holdings.

 

A Good Time to Prepare for Tomorrow

A Good Time to Prepare for Tomorrow

While there is never a wrong time to revisit your estate plan with your attorney, two aspects of the current economic environment may provide an especially good opportunity to launch new trusts or structured charitable giving. In our view, today's very low interest rates are advantageous for some estate planning vehicles, and if you're thinking about transferring securities or real estate to your heirs, the fact that such assets have probably lost value — an otherwise painful reality — could be an advantage here, translating into potential savings on gift and estate taxes.

Beneficiaries of several kinds of trusts stand to gain if the assets they inherit outperform an IRS-stipulated interest rate — and that's likely to happen for trusts built around today's rates, which remain near historic lows, according to Scott Cooper, Managing Director of Merrill Lynch’s Wealth Structuring Group.

 

Giving In A Time Of Need

For Detroit residents Kamlesh and Deepika Parekh, providing help to the children of Mumbai remains a personal mission.For the charity-minded whose assets have dropped, this may be a time for uncomfortable choices. But with guidance from their Financial Advisors, many clients are still finding ways to rise to the occasion.


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Solutions for Families of Children with Special Needs:

Related Solutions

Solutions for Families of Children with Special Needs:

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Solutions for Families of Children with Special Needs:

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Disclosure

Any information presented about tax considerations affecting client financial transactions or arrangements is not intended as tax advice and should not be relied upon for the purpose of avoiding any tax penalties. Neither Merrill Lynch nor its Financial Advisors provide tax, accounting or legal advice. Clients should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with their personal professional advisors.