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When families gather at their cottages or vacation properties, the senior generation might think how nice it would be for these multi-generational gatherings to continue after they pass. But before designing an estate plan to address the future generations’ continued use and enjoyment of the shared properties, there are two important questions a family must consider. Along with answering those questions, additional thoughts are provided to help families understand their goals for the property and the financial aspects of the next generation ownership of the property.

Once a family has made a decision to pass the ownership of family cottage or vacation property to the next generation, you will need to give thought to how that ownership will be held. There are basically three options for the form of ownership and use of a cottage by multiple households of a family: co-tenancy, a trust, or a limited liability company (LLC). Each one has advantages and disadvantages, which means that each family will have to weigh these and decide what form makes sense for them.

Once you have decided to pass the family vacation property to the next generation, and you have chosen the ownership form you want to use, the last step in preparing for the transfer is to create an agreement that spells out the use and maintenance of the property and gover

While it might seem like a great position to hold a concentrated position in a low-basis stock that has appreciated over time, it poses several challenges related to investment risk and taxes. Here are some charitable options for lowering your risk while doing the most good with your gains, whether that means giving to a worthy cause, gifting to a family member in a lower tax bracket, or both.

Being asked to oversee a family trust is a big deal. It’s a huge responsibility, and one you may not feel prepared to accept. Even if you’ve participated in or been exposed to the world of trusts, you may not have the knowledge or skills to be an effective trustee right now.

When the Tax Cuts and Jobs Act (TCJA) was passed in late 2017, the “sunsetting” of many of the provisions in 2026 seemed far away. Among those of benefit to high-net-worth individuals was the increasing of the gift, estate and generation-skipping transfer tax exemptions to $11.18 million per person ($22.36 million for married couples) for 2018. The tax exemptions are indexed annually for inflation through December 31, 2025. For those who can afford to use the higher exemption, learn what’s at stake and what needs to happen before the exemption is significantly reduced.

It may seem that there will always be time to address estate planning. However, a unique opportunity to maximize the amount of wealth that can be tax-efficiently passed to heirs will expire at the end of 2025. Furthermore, legislation could curb lifetime exemption limits even sooner. The opportunity is even more pressing because the current market downturn represents an especially advantageous time to optimize your taxable estate before markets eventually recover.

Choosing a trustee is a major decision—one that may impact you and your family in many ways for generations to come. Essentially, when you establish a trust for the benefit of others, you are handing down your values through the terms of the trust and your contributed financial assets. And with an increasing number of trusts lasting for multiple generations—and even into perpetuity in some states—it’s important to understand the role of a trustee, how to select a trustee, and the advantages to naming both a corporate trustee and an individual trustee.

For the families that are reevaluating and modifying their fiduciary structures, this reference summary of state laws is provided for consideration when establishing wealth transfer plans and structures, including taxation, trust laws, asset protection, and regulated and unregulated private trust companies. This updated summary includes a broader aggregation of top U.S. trust jurisdictions, covering Wyoming, Alaska, Delaware, Nevada, New Hampshire, South Dakota, and Tennessee.

Residents in 43 states pay state income tax, with the highest rate being 13.3%. When combined with the top federal marginal tax rate and the net investment income tax, residents subject to the highest state income tax rate could face a total levy of 54.1% of income. As a result, those residents are interested in finding ways to mitigate the tax. An incomplete gift non-grantor trust (ING trust) could be the answer.