Author: Jennifer Fisher

By Robert (Rory) J. O’Hara III, CFP®, CRPC™

Have you considered how you want to pass on your wealth to future generations? 

While leaving a gift that lasts for generations may be an admirable objective, estate planning and gifting present unique challenges. 

In this quick video, we explore key strategies to help you pursue your goals.

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TRANSCRIPT

Hi, I’m Rory O’Hara, Founder and Senior Managing Partner at Ausperity Private Wealth. Today, I’ll share insight into effective ways to transfer wealth to future generations.

Transferring assets can be a complex process, but by using specific strategies, you can simplify and streamline wealth transfer. Below are three approaches to consider:

Direct Payments for Simplified Transfers

Direct payments allow you to transfer cash or other assets directly to a third party, reducing the need for complex estate administration.

Examples include:

• Paying tuition directly to educational institutions for your grandchildren’s education.
• Covering medical expenses by sending payments directly to healthcare providers.

This method offers a straightforward way to support your loved ones while minimizing administrative burdens.

Using Annual Gifting to Reduce Taxes

Annual gifting is a practical way to transfer wealth incrementally while taking advantage of tax benefits. By utilizing the annual gift tax exclusion, you can transfer a certain amount to individuals without incurring gift taxes.

Currently, the annual gift exclusion is set at $18,000 per person. If you exceed this amount, you may need to file a gift tax return, but that doesn’t necessarily mean you’ll owe taxes.

Consulting with a tax advisor can help you navigate the process and optimize this strategy effectively.

Irrevocable Trusts for Long-Term Wealth Management

Irrevocable trusts offer an organized approach to transferring wealth while potentially reducing taxable estate values. Assets placed in an irrevocable trust are excluded from your estate, which can help manage estate taxes.

Benefits of irrevocable trusts include:

• Tax Advantages: Contributions may apply to the annual gift exclusion or lifetime exemption, reducing gift tax exposure.
• Protection from External Risks: Assets are generally protected from creditors, lawsuits, and divorce settlements.
• Customizable Distribution Plans: Trusts can be structured with conditions based on age, milestones, or other factors.
• Intergenerational Support: These trusts can provide benefits to children, grandchildren, or charities while limiting additional taxes.

Irrevocable trusts also offer options for combining family wealth transfer with philanthropic objectives, creating a structured plan for long-term impact.

Expert Guidance for Wealth Transfer

These three strategies—direct payments, annual gifting, and irrevocable trusts—highlight some of the many ways to effectively transfer wealth to future generations.

At Ausperity Private Wealth, we believe in collaboration and tailored solutions. If you’d like to discuss your wealth transfer goals, contact me to schedule a meeting:

📞 856-252-0102

By Robert (Rory) J. O’Hara III, CFP®, CRPC™

Is your tax bill dancing in your head instead of sugar plums this holiday season? In this video, Rory O’Hara discusses year-end tax strategies to help you maximize your savings and minimize taxes. You have moves to make by year’s end that can safeguard your pocketbook. Watch this video to learn more.

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TRANSCRIPT

Are you concerned about taxes eating into your income and savings this year?

Hi, I’m Rory O’Hara with Ausperity Private Wealth. Our mission is to help clients grow and preserve their wealth. Today, I’ll share year-end tax planning strategies that can help you minimize taxes and maximize savings.

1. Harvest Tax Losses

As you align your portfolio with your goals, consider offsetting capital gains by selling investments that have underperformed. This strategy, known as tax-loss harvesting, can reduce your tax liability for the year.

2. Take Required Minimum Distributions (RMDs)

If you’re 73 or older, ensure you take your RMD by year-end. Missing this distribution could result in a 25% penalty on any undistributed amount.

3. Maximize Retirement Contributions

Contribute the maximum to your retirement accounts:

• $23,000 for your 401(k) (if under age 50).
• $30,500 if you’re over 50.

These contributions lower your taxable income, deferring taxes until retirement.

If you expect to be in a higher tax bracket during retirement, consider converting some of your traditional IRA to a Roth IRA this year. Money in a Roth IRA grows and can be withdrawn tax-free in retirement.

4. Optimize Charitable Giving

Giving can lower your taxes while supporting causes you care about:

• Cash Donations: Deduct up to 60% of your adjusted gross income (AGI).
• Appreciated Assets: Donate long-term appreciated assets like stocks to deduct their full market value (up to 30% of AGI) while avoiding capital gains tax.
• Qualified Charitable Distributions (QCDs): If you’re over 70½, donate directly from your IRA (up to $105,000) to avoid taxes and meet your RMD requirements.

5. Consider a Donor-Advised Fund

A donor-advised fund allows you to:

• Contribute a large amount now, taking a full deduction this year.
• Distribute funds to charities over several years.

This strategy, called bundling, lets you maximize deductions now while using the standard deduction in future years.

Partner with a Financial Advisor

A financial advisor can guide you through these strategies, helping you reduce taxes while maximizing savings. At Ausperity Private Wealth, we work with successful families to optimize their financial futures.To schedule an appointment, call us at 856-252-0102 or visit our website at www.AusperityPrivateWealth.com.