What is a S.A.F.E. Trust?
A S.A.F.E., or Spousal and Family Exclusion Trust, is a type of irrevocable trust which retains indirect access by the donor while simultaneously avoiding estate taxes and creditors. This type of trust is for those who see the family as a team, intend on maintaining a life-long marriage, and seek to protect their wealth for generations to come.
Learn more about tax-saving strategies here.
Why is S.A.F.E. a unique estate planning strategy in 2020?
As you may know, a federal gift and estate tax exclusion can be used to transfer a certain amount tax-free to family or loved ones. That tax exclusion currently is $11,580,000 per person and is scheduled to expire on December 31st, 2025. When this happens, it will revert to $5 million plus inflation. So, the federal estate tax exemption is likely to be about $6 – $6.5 million. However, the President-Elect expressed his intention of lowering this federal tax exclusion to $3.5 million as soon as possible. This change could be made effective in 2021.
So when do Steve Waltar and Andrea Lee recommend using a S.A.F.E. strategy? Before the end of 2020. Gifting up to $11,580,000 to a loved one through a Spousal or Family Exclusion Trust before the end of 2020 could save you up to 60% on estate taxes.
You can have your cake and eat it, too!
Get Started Today!
Your family’s tax strategy is an important piece to your estate plan and long-term financial stability. Lock in tax savings before the year’s end to ensure your legacy while current tax legislation is still available. Work with one of our knowledgeable attorneys today to craft a plan unique to your family’s needs.
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