The Challenge 

An existing client of Morgan Rosel called and notified us that he was about to receive a substantial sum of money as a gift from his mother. His mother was transferring her estate to her son and gifting millions of dollars in the process. His mother’s advisor recommended a direct gift to our client, which in our opinion was a poor wealth transfer strategy that could potentially cost this family millions of dollars in unnecessary estate tax in addition to exposing these assets to unnecessary legal risk.

Our Solution

The Morgan Rosel team worked with our client and his mother to immediately stop the direct transfers, while coordinating with a recommended estate planning attorney to establish a specialized type of trust to accept these gifts that would allow for a tax-free transfer of assets to our client’s family that can be accessed as necessary during his life yet pass to his children outside of his estate.

When set up properly, an estate plan can reduce how much of an estate is taxed or eliminate the estate tax burden altogether so that money can be passed down for generations to come.

The Result

Once our team was given access to the full picture of our client’s changing situation, we were able to advise the client on a simple wealth transfer strategy that has the power to save millions of dollars in future estate tax while providing for current needs and shielding the assets from unnecessary legal risk. Knowing how to avoid unnecessary estate tax and legal risk is paramount to successfully transferring hard-earned wealth to future generations.

Nothing in the above case study should be construed to be specific investment, estate planning, legal, or tax advice.

This commentary reflects the personal opinions, viewpoints and analyses of the MorganRosel Wealth Management, LLC (“MRWM”) employees and guests providing such comments, and should not be regarded as a description of advisory services provided by MRWM or performance returns of any MRWM Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. MRWM manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. MRWM may recommend the services of a third-party attorney, accountant, tax professional, insurance agent, or other specialist to clients. MRWM is not compensated for these referrals.