Estate planning and angel investing can be used to secure assets for future generations. California residents may be interested in learning which methods and strategies can be used to make sure their investments can benefit their beneficiaries.
Angel investors should begin estate planning as soon as they have investments that have the potential to yield many returns. The assets can be placed in a trust, which will protect them from being claim during a divorce or by creditors. Using a trust allows the assets to be used according to the settlor’s wishes.
Assets that are given away as gifts should be disbursed over the course of a lifetime. Individuals can claim exemptions on federal estate and gift taxes of up to $5.45 million over their lifetimes. The lifetime exemption allows $5.45 million, in full or in part, to be given away with no tax consequences, or it can be used to shelter a portion of an estate from taxes at the time of the benefactor’s death.
Angel investing can be used by parents as a starting point for learning the basics of wealth building for their adult children. Involving the family in portfolio company evaluations is an effective way to share investing advice without having complicated discussions regarding the net worth of the family.Efficient record-keeping of angel investments is another important part of ensuring future generations benefit from them. Regular statements are not issued for angel investments, so records are essential to an executor or surviving spouse locating the investments. The records should be detailed and include the value of each asset.
Effective estate planning techniques can be used with wise angel investment strategies to ensure tha assets are protected for future generations. An attorney who has experience with these matters can describe the types of tools that may be appropriate.