Gift of $10,000,000 Coupled With a Dynasty Trust (6.00% Growth Assumption)

Release Date: February 2011

There is considerable activity among advanced planners regarding the new no-tax gifting limit of TRA 2010 (up to $10,000,000 per couple) that is available through 2012. This Marketing Alert examines the effectiveness of such gifts when coupled with a Dynasty Trust.

Robert and Marianne Copeland are ages 60 and 55 with liquid Net Worth of $25,000,000. They want to see the effect of a $10,000,000 gift on 1) Their accruing Net Worth and 2) Wealth to Heirs. They have assumed growth of their Net Worth to be net 6.00% after accounting for the cash flow for their living expenses. This Wealthy and Wise^® graphic compares “before” and “after” Net Worth: