Estate Planning

Welcome to Straight Talk. We at Legacy Legal and Family Legacy Trainings appreciate your enjoyment of our weekly insights on Building Generational Wealth.

PLEASE SAVE THE DATE: Saturday May 4, 2013. 9:00-3:00

We will be conducting a one of a kind interactive workshop along with renowned family business advisor and executive consultant Ken Druck who has national acclaim in his work with family and business transitions. Ken’s book the Real Rules of Life is recognized around the world.

Building Generational Wealth is about more than just money. It is about wealth in values, beliefs and traditions. What are some of the things you need to know in building generational wealth.


With the passage of the American Taxpayer Relief Act (not sure how taxpayers got relief when tax rates went up and paychecks are smaller) the amount a person can protect from estate tax became permanent at 5 million dollars. So a married couple can protect 10 million dollars from estate tax. The estate tax rate went to 40% for amounts over the 10 million.

Many people are unaware and confused with the meaning of unified in the estate and gift tax area. What this means is that you can make a one time gift of 5 or 10 million and pay no gift tax either.


You can gift up to $14,000 per person or $28,000 per couple to each person you choose and there are no tax consequences. Putting this money in the right place such as an irrevocable trust for children or grandchildren is a great way to build generational wealth. Making gifts to charity and paying no taxes on those gifts and using strategies to replace that wealth tax free is a great way to build generational wealth.


While the Unified Exemption Amount alleviates about 98% of the population from having an estate tax problem, for those that are fortunate to have wealth in excess of the exclusion amount, believe it or not when it comes to building generational wealth it costs less to make a gift today while you are still here than to wait until you are gone.

How can this be? Well let’s take a simple example.

With the gift tax rate at 40% if you make a gift of 8 million dollars, then the tax will be 40% of 3 million (excess over 5 million) or 1.2 million. So the total dollars you need to make the gift will be 8+1.2 or 9.2 million. If, however, you wait until you are gone and you want to give away the same 8 million dollars, you will need to have dollars in your estate equal to about $13, 300,000. This is because on the 13.3 million you will incur a 40% estate tax of 5.3 million leaving the same 8 million to go to your beneficiaries. They actually have a term for this stuff which I am going to leave out for the sake of our sanity.

We are experts in guiding you in Building Your Generational Wealth. Our team has the right knowledge, the right experience and we deliver quality that is right for you.

Thank you for being a part of our Straight Talk community. We educate, transform and inspire business owners and families in changing the way they think and talk about wealth in money, values, beliefs and traditions. By Uniting, Aligning and Nurturing your common purpose and vision you can preserve and protect wealth and leave each generation accomplishing clarity year round. Legacy. What is your Legacy?

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