WealthManagement.com
Apr 07, 2020
There are 7.4 million Americans who own a second home . Planning for these assets
is important to the estate-planning process. The current environment of lower
values, high temporary exemptions and a growing concern among the wealthy that
estate taxes will be made harsher to pay for the coronavirus bailouts, suggest that
planning for this popular asset has become even more important. Wealthy clients
can use vacation homes as gift assets to use some of their current high temporary
exemptions. This can be particularly advantageous now as many clients will be
reluctant to gift away investment assets given market declines, as they may want to
preserve those diminished assets to cover future living costs. Many wealthy families
wishing to pass on vacation homes to future generations should take steps before the
current high temporary exemptions decline.
Using exemptions and passing on a vacation home require planning. That planning
often is best served with a long-term dynastic trust.
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