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California High Net-Worth Estate Planning

Do you want to transfer all your hard earned assets to your loved ones? Have you worked whole your life and you want to be secure for the future of your family? There are a broad range of charitable gifting and assets transferring techniques which contribute to the taxes reducing and provide you with an opportunity to skip high taxes in order to transfer your assets to the future generation. Otherwise, you are at risk to end up with the taxing authorities.

In today’s complex economy, estate planning obtains various forms. Below, The Margarian Law Firm lawyers will introduce you the main elements of the California Sophisticated Planning Strategies for High Net Worth Individuals. Moreover, in the resources of our site you can find detailed information about Estate Planning in California.
  1. Family Limited Partnerships or Limited Liability Companies,
  2. Personal Residence Trusts,
  3. Irrevocable Life Insurance Trusts
  4. Who Can Help to Create an Estate Plan that will Help My Family?

In addition, we are ready to provide answers to your initial questions concerning different issues of California for FREE.
You may file your request online, by telephone or by mail. (818) 553-1000.

1. What is Family Limited Partnership (FLP)?

A Family Limited Partnership (also known as FLP) is a limited partnership which consists of the members of your family. The FLP provides with the following main advantages:
  • Gift tax savings,
  • Asset protection,
  • Control over the transferred assets.
Thus, by establishing a FLP, you may complete several estate planning objectives simultaneously. Firstly, you may make gifts by means of the annual gift tax exclusion. It means that depending on the interests that you gave away to the FLP, you will not be obligated to pay gift tax on the assets’ transfer. If your FLP will be properly-structured, you will retain the control over the assets which you have been transferred and it is not required to distribute the earnings of your partnership between partners.

2. What is Qualified Personal Residence Trusts (QPRT)?

One of the most valuable components of any person taxable estate is the home. A QPRT gives an opportunity to give away your home (including vacation home) at a great discount. Moreover, it allows you to continue to live in it.
To establish a Qualified Personal Residence Trust you need to:
  • Transfer the title of the house to the QPRT,
  • Reserve the right to live in it for a specified time.
When you live to the end of this period, your home and the appreciation in the value of the taxable asset since the transfer passes to your beneficiaries and it is free of any additional taxes. If you continue to live in the home after the end of the specified number of years, you need to pay the rent to designated beneficiary. In this case, you may be sure that the home will not be included into your taxable estate. Unfortunately, if you die before the mentioned period, the state will include the house in your estate for tax purposes. Additionally, a QPRT is a perfect creditor protection tool because from the legal point of view you are not anymore considered to be the owner of the property once your residence is transferred to the QPRT.

3. What is Irrevocable Life Insurance Trusts (ILIT)?

Three components are involved into an Irrevocable Life Insurance Trust: the grantor (a person who creates a trust), a trustee (a person managing the trust), and beneficiaries (persons who will receive the trust assets after you die).

The main duty of a trustee is to buy an insurance policy for the grantor and distribute insurance benefits (oftentimes, as it has been instructed) when it is paid. The grantor transfer money to the trustee to pay the premium on the insurance policy. Mostly, it is better to make annual tax-free gifts (up to $13,000) to each beneficiary of your trust. Nonetheless, each beneficiary has the right to take the gift now.

4. Who Can Help to Create an Estate Plan that will Help Your Family?

The Margarian Law Firm lawyers know that our clients wish to be assured for the future of their loved ones. We offer our clients both estate planning packages and individual estate planning documents. We try to make the process as simple as possible. At our Law Firm, we will evaluate your specific estate planning need and we will carry out your wishes as you desire.

Firstly, we will have an initial consultation for you. Our lawyers will explain you the main tools of California Estate Planning Law. Secondly, when you hire us, you can leave the entire legal headache and concentrate on your everyday life. We will protect your interests.

Take the action into your own hands and call us today.
You may file your request online, by telephone or by mail.

(818) 553-1000


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