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A trade worth noting

A Trade worth noting- When your making the changes from one investment to another, how much is it improving your net worth?

Since profits and losses are what we measure are beans with…I have a trade that can make you 41% or more of your taxable assets if done correctly. A simple trade will save you a significant amount of cash.

Here’s how this works…I have 4.3 Million in cash assets set up in 401k’s, life insurance, and annuities. They all have beneficiaries and so when I die it goes directly to the named beneficiary as soon as I die.

OOOPS, I’m incorrect, let me explain.

First it is calculated as an asset inside of my estate then it is delivered to the beneficiary. I need to make an adjustment and fund my estate with those assets. In 2009 the taxable portion is 41% of my assets in excess of 3,500,000.00 or 328,000.00 that I have to pay to the government and not to my church, kids, or favorite charity cause, which happens to be an online college fund for burn victims. That’s Three Hundred Twenty Eight Thousand or 10-12 more kids I would have been able to provide an education to when I die.

The last time I made a trade that profitable was when I bought AOL as an IPO and sold it too soon.

The simple solution is making a trade; it’s called incidents of ownership. This includes any incidents of ownership in life insurance, 401k, and annuities with a beneficiary. If you do not retitle the ownership of assets by naming a trust as the owner,  it will be included as an asset to the estate and valued as such. So make the trade and remove it from your estate. Your estate will profit big-time.

Those assets must be owned by a trust and not list you as the owner, separating you as an incident of ownership. Incident of ownership includes any other property, insurance proceeds or future claims to cash payments; such as future royalties or income from a prior arrangement.  

Next…. Make a gift to the noisy neighbor that they will hate to refuse.



Disclosure: no positions