Window of Opportunity to Transfer Asset Appreciation Free of Gift and Estate Taxes
Finding ways to transfer assets to your family without making significant taxable gifts is critical to the goal of passing the wealth you have accumulated to the next generation. A “GRAT” can leverage the confluence of today’s depressed asset values and low interest rates to help you achieve this goal. However, this is a window of opportunity that exists today and may close in the very near future. Once you have accumulated enough wealth to satisfy your own needs, transferring assets to the next generation - instead of to the IRS - becomes an important goal. The federal estate tax will take 45% of all assets valued in excess of $3,500,000 that you transfer at death to anyone other than your spouse. Many states, Massachusetts among them, also impose a state estate tax.
