Heads you win, tails you win

This calendar year may provide a watershed opportunity for those families looking to take advantage of the considerable, but temporary, wealth transfer exemption rules. Most families are not opposed to saving death taxes by transferring appreciating assets out of their estates but don’t necessarily believe the law will change for the worst.

Under current tax law, the lifetime gift and estate tax exclusion a taxpayer may gift tax-free, or bequeath to an estate, is currently $11.580M*.  If the other party wins the Whitehouse and Congress, they have suggested they will repeal the favorable tax laws and replace them with laws that provide a considerably more modest exemption and higher tax rates at death.

Meet the HUWTUW Trust, which is pronounced ‘Hootoo’ and stands for “Heads You Win, Tails You Win”, as the answer to those who want to hedge their bet.  If the law does change and the tax rates increase, they are grandfathered by having funded their HUWTUW Trust and if the laws don’t change, they have the option to reclaim the gifted assets if they don’t wish to remove the appreciation from their gross estates.

Trusts can be complicated but we simplify the complex.

Please contact us to explore your options for creating a custom HUWTUW Trust for your family while keeping things simple.

* For the tax year 2020 and such amount is indexed for inflation