• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Nirenstein, Horowitz & Associates P.C.

Estate Planning | Making a Difference One Family at a Time

An Estate Planning Law Firm
Making a Difference One Family at a Time

Call Now: (860) 548-1000

Attend a Complimentary Seminar
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • RSS
  • Twitter
  • YouTube
  • Home
  • Our Firm
    • About Our Firm
    • Careers
    • Client Testimonials
    • Meet Our Team
  • Services
    • Asset Protection & Business Planning
    • Estate And Gift Tax Figures
    • Estate Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Pet Planning
    • Powers of Attorney
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
  • Elder Law
    • Alzheimer’s Disease
    • Caregiver Information
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
  • Resources
    • Complimentary Estate Planning Worksheet
    • Complimentary Medicaid/Long-Term Care Calculator
    • DocuBank
    • Elder Law Resources
      • Glastonbury Elder Law Resources
    • Estate Planning Articles
    • Estate Planning Checkup
    • Estate Planning Definitions
    • Estate Planning Presentations
    • Estate Planning Seminars
    • Estate Planning Techniques
    • Frequently Asked Questions
      • Asset Protection and Business Planning
      • Elder Law & Medicaid
      • Estate Administration
      • Estate and Gift Tax
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • In-Home Elder Care
      • Irrevocable Trusts
      • LGBTQ Estate Planning
      • Living Trust
      • Medicaid Planning
      • Nursing Home Asset Protection FAQs
      • Probate
      • Probate Avoidance
      • SECURE Act 2.0
      • Trust Administration
      • Wills
    • Newsletters
    • Probate Resources
      • Probate Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Seminars
  • Communities We Serve
    • Fairfield County
      • Darien
      • Fairfield
      • Stamford
    • Hartford County
      • Avon
      • Hartford
      • Simsbury
      • West Hartford
    • Litchfield County
      • Watertown
    • Middlesex County
      • Middletown
      • Old Saybrook
    • New Haven County
      • Middlebury
      • New Haven
    • New London County
      • Groton
      • Old Lyme
      • Stonington
    • Tolland County
      • Mansfield
    • Windham County
      • Woodstock
  • REVIEW US
  • Blog
  • Contact Us
Home » Estate Planning » What Is a Family Wealth Trust?

What Is a Family Wealth Trust?

October 28, 2015 by Jeffrey A. Nirenstein, Estate Planning Attorney

What Is a Family Wealth Trust?Accumulating wealth that you can pass along to your loved ones after you are gone is rewarding, but earning the money is only half of the equation. Given the potential impact of estate taxes, you must also take steps to preserve your wealth. This can be done through the creation of a family wealth trust of some kind.

Wealth Preservation

There is no specific type of trust that is formally called a family wealth trust, but this is a general umbrella that multiple different types of trusts would fall under. Before we look at some of these family wealth trusts, we should provide some information about the estate taxes that could be a factor for you.

First, there is the federal estate tax that everyone in all 50 states must be concerned about. You can transfer unlimited assets to your spouse tax-free, but asset transfers to others are potentially taxable. However, there is a relatively large credit or exclusion that allows you to transfer a certain amount of property free of taxation.

For the rest of the 2015 calendar year, the federal estate tax exclusion is $5.43 million. Each year this figure is adjusted slightly to account for inflation, so next year the number may be somewhat larger. The first $5.43 million that you transfer could be transferred tax-free, but the rest would potentially be subject to the estate tax. This tax carries a 40 percent maximum rate.

Our firm is located in the state of Connecticut. In our state, there is a state-level estate tax to contend with as well. The Connecticut estate tax exclusion is just $2 million. This is considerably lower than the federal exclusion, so you could face state-level exposure even if your estate is exempt from the federal estate tax.

We should point out the fact that there is an unlimited marital deduction on the state level as well. You can transfer unlimited assets to your spouse without incurring any Connecticut state estate tax liability.

Now that we have explained the lay of the land, we can look at family wealth trusts that are often utilized by people who are exposed to death taxes. A trust that would preserve assets would be an irrevocable trust, because you surrender incidents of ownership when you create this type of trust.

Generation-skipping trusts, grantor retained annuity trusts, charitable lead trusts, charitable remainder trusts, and qualified personal residence trusts are some of the trusts that are used for wealth preservation purposes. The optimal plan will depend upon the circumstances.

Schedule a Free Consultation

You can potentially use a family wealth trust to preserve resources that you are passing along to your family members. If you would like to discuss your unique personal situation with a licensed professional, send us a message through our contact page to request a free consultation: Hartford CT Estate Planning Attorneys.

  • Author
  • Recent Posts
Jeffrey A. Nirenstein, Estate Planning Attorney
Jeffrey A. Nirenstein, Estate Planning Attorney
Founding Partner and Vice President at Nirenstein, Horowitz & Associates PC
Jeffrey A. Nirenstein is a founding partner and vice president of the law firm of Nirenstein, Horowitz & Associates, P.C. He received his bachelor of arts degree in government from Clark University and his law degree from New York Law School.

Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
Jeffrey A. Nirenstein, Estate Planning Attorney
Latest posts by Jeffrey A. Nirenstein, Estate Planning Attorney (see all)
  • IRS Announces Gift and Estate Tax Increases for 2024 - November 23, 2023
  • Schedule an Estate Plan Review with the New Year Approaching - November 7, 2023
  • Estate Administration: Navigating the Critical First Steps - October 19, 2023
Share our Content:

Filed Under: Estate Planning

Other Articles You May Find Useful

codicil
What Is a Codicil and How Does It Work?
supplemental needs trust
Secure a Loved One’s Future With a Supplemental Needs Trust
estate and gift tax, estate tax, gift tax
IRS Announces Gift and Estate Tax Increases for 2024
legacy planning Silver Tsunami
Legacy Planning In the Age of the Silver Tsunami
legacy plan
What Money Can’t Buy: Intangible Wealth That Bolsters Your Legacy Plan
estate plan review
Schedule an Estate Plan Review with the New Year Approaching

Primary Sidebar

Nirenstein, Horowitz & Associates

Upcoming Seminars

Estate Planning Seminar

Date: December 5

Venue: Sheraton Hartford South Hotel, 100 Capital Boulevard, Rocky Hill, CT, 06067, United States

Estate Planning Seminar

Date: December 5

Venue: Sheraton Hartford South Hotel, 100 Capital Boulevard, Rocky Hill, CT, 06067, United States

See all Seminars

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

TESTIMONIALS

Blog Subscription

Our blog gives you the most up-to-date estate planning news. Sign up today to receive our regular updates!

  • This field is for validation purposes and should be left unchanged.

WESTPORT OFFICE

8 Wright Street, Suite 107
Westport, CT 06880
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr_map

Somerset Square

200 Glastonbury Boulevard, Suite 202
Glastonbury, CT 06033-4418
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr1_map

Office Hours

Monday8:30 AM - 5:00 PM
Tuesday8:30 AM - 5:00 PM
Wednesday8:30 AM - 5:00 PM
Thursday8:30 AM - 5:00 PM
Friday8:30 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.