Preserve Your Wealth By Looking Ahead
If you find yourself in a position where you have more than ample resources to last throughout your
lifetime you have to start to consider how you will be preserving your wealth. Two individuals who
certainly are in this category would be Facebook founders Mark Zuckerberg and Dustin Moskovitz.
Forbes tells us that these two young entrepreneurial geniuses have taken some poignant wealth
preservation measures. They reportedly utilized what is known as the "zeroed out" grantor retained
annuity trust strategy back in 2008, funding their respective trusts with Facebook shares.
When you create one of these trusts you name a beneficiary who would assume ownership of any
remainder that exists after you take annuity payments out of it annually throughout the trust term. The
IRS tacks on anticipated interest using 120% of the federal midterm rate.
The point is to take annuity payments equal to the entire taxable value of the trust including this
estimated interest. If the assets appreciate along with this estimate there will be nothing left in the trust
when its term expires after all the annuity payments have been made.
But if you fund the trust with volatile securities such as Facebook shares prior to a public offering it
will outperform its original taxable value and something will be left in the trust. This sum becomes the
property of the beneficiary, and this transfer is not subject to taxation.
If you are interested in preserving your wealth for future generations, the wise course of action is to sit
down and discuss the possibilities with an experienced, savvy central New Jersey estate planning
Experienced estate planning attorneys Warren NJ of the Augulis Law Firm offers estate planning and
business planning resources to residents of Warren, NJ. To learn more about these free resources, please
visit www.augulislawfirm.com/ today.