301 Lippincott Drive, 4th Floor • Marlton, NJ 08053
Phone: (856) 355-5905 • Fax: (856) 810-3995
At BJL Wealth Management, we not only sit down with our clients to plan their retirement but we take it one step further and plan for a client's estate. Our company has the experience to handle these situations and understand the many obstacles the Estate Tax is causing for our clients. We have relationships with numerous attorneys so when it comes time to finalize your estate plans we will make sure you receive the appropriate expertise.
BJL Wealth Management LLC, is not a law firm and does not provide legal advice, nor drafts legal documents.
Basic Trust Documents
One of the first things we review with a client are the basic trust documents and their purposes. Creating a will is crucial; it ensures that an individual's belongings will go to the desired beneficiaries. In addition, the existence of a will can speed up the court review process considerably.
Durable Power of Attorneys for Business Affairs and/or Medical decisions is also very important. It is essential for a client to name someone that they trust to conduct their affairs should the client become incapacitated or incapable of handling their affairs on their own.
Other important documents and trusts include trust certifications, assignment of personal property, pour over wills, and summary of synopsis. The goal is always to make sure the client comprehends the situation in order to be sure they are fully protecting their property and family.
Gifting Vehicles / Trusts
There are many options available to take advantage of for clients. Here is a short list of estate planning ideas we have used with clients:
Irrevocable Life Insurance Trusts - The trust owns the insurance policy and pays premiums through gifts by the grantor (often his or her annual exclusion). Assets are removed from estate so that beneficiary receives insurance proceeds free of estate tax at grantor's death.
Grantor-Retained Annuity Trust (GRAT) - This is designed to pass on substantial wealth, free of gift tax, if trust assets appreciate above a pre-determined rate of return. This can be a good vehicle for volatile assets.
Charitable Lead Annuity Trust (CLAT) - The trust appreciates and the remainder goes to beneficiaries but the annuity payments go to a charity. This vehicle is usually used for philanthropic as well as family gifting goals. The gifts are subject to income tax but also carry a charitable deduction.
Family Limited Partnerships (FLP) - The partnership can be used with business, personal or investment assets. The traditional purpose is to divide investment income with children in lower income tax brackets and increase the family's net spendable income. The gifted ownership interest can also receive a discounted value because the interest is either a minority interest or lacks marketability. The minority interest should of course be carefully reviewed by an attorney.
Securities offered through Registered Representatives of Cambridge Investment Research Inc. Member FINRA & SIPC. BJL Wealth Management, LLC and Cambridge Investment Research Inc. are separate entities.