4 Wealth Transfer Strategies MostPeople Learn About Too Late
Source
American Shipper
Post Date
08/07/2025
Many Americans hopeto leave a financial legacy, but without the right estateplanning strategies, much of that wealth could be lost to taxes, probate orfamily conflict. A robust estate plan includes thoughtful transfer strategiesthat ensure heirs get to hold on to as much wealth as possible ?and thesestrategies should be put in place as early as possible for a smooth transition ofassets.
Here are four commonlyoverlooked estate planning moves that can help protect yourwealth and preserve it for your loved ones.
1. Use Lifetime Gifting To ReduceEstate Taxes
Gifting assets during yourlifetime ?either directly or through vehicles like a family limitedpartnership ?not only reduces your taxable estate but allows you to witnessthe impact of your generosity.
Yet, many high-net-worthindividuals don? take full advantage of the annual or lifetime gift taxexemption until it? too late,
?here? a saying that Ilike to remind clients to think about: Would you rather give with a cold handor a warm one??she said. ?his helps people think through what matters mostwhen it comes to gifting.?
2. Set Up a Trust To Control andProtect Wealth
Trusts are anotherpowerful tool that are often underutilized.
?hether it? a revocableliving trust to avoid probate, or more advanced strategies like a spousallifetime access trust (SLAT) or irrevocable life insurance trust (ILIT), these canhelp control how and when wealth is distributed, protect assets from creditorsand preserve family harmony,?Taylor said.
These can be especiallyhelpful in cases where there are bled families or complex businessinterests.
3. Use Life Insurance To CreateTax-Free Inheritance
Life insurance can play a key role in wealth transfer planning, especially when structuredproperly.
?ife insurance can be a smart way to liquidity to pay estate taxes or equalize inheritances among heirs, but thestructure matters,?Taylor said. ?olicies held inside a properly designedtrust ?like an ILIT ?keep the death benefit out of your estate and in yourfamily? hands.?
4. Plan Early To Minimize Estate Taxes
Estate tax minimizationstrategies ?such as freezing the value of appreciating assets or leveragingvaluation discounts ?can dramatically reduce what? owed. But timing iseverything.
?hese are highly time-sensitive and must be planned foryears in advance,?Taylor said.
How To Implement Wealth Transfer Strategies
Wealth transfer strategies should be implemented in youroverall financial plan as early as possible, and should becontinually d as policies or personal circumstances change.
?ersonal financial situations can shift unexpectedly,especially in today? rapidly evolving legislative landscape,?said BrianTullio, CFP, wealth manager at Fairway Wealth Management.
?o avoid uninted estate tax exposure, stay proactiveand integrate estate planning into your ongoing financial planningdiscussions,?he said. ?s your circumstances change or new laws are enacted,regularly reviewing and updating your estate plan will serve as a critical partof your overall comprehensive wealth planning.?
It? also crucial to communicate your plans clearly withloved ones.
? lot of financial damage happens not because thedocuments were wrong, but because the family wasn? prepared,?? always tellclients, if you don? make these decisions clearly and intentionally, your kidswill have to. And they?l be doing it without you in the room.?
That? why he emphasizes the importance of bothdocumentation and dialogue.
