Wills and Trusts
We provide legal services such as setting up trusts and protecting assets, including:
A revocable living trust is a written contract in which the setter appoints someone to manage personal properties. A living trust involves three parties: the setter, the administrator, and the beneficiaries. The biggest function of a living trust is to help avoid probate, and other functions include distributing property according to personal wishes, and can also establish a long-term property management mechanism through a living trust, a well-designed and potentially tax-saving pre-living trust.
A life insurance trust is an irrevocable trust that is then used to own the life insurance policy. The effect of this practice is that in the event of the death of the insured, the proceeds of the premium will be fully tax-free. Given the current estate tax rate of 35% – 40%, life insurance trusts have the potential to save hundreds of thousands of dollars in estate taxes.
Gifts and Asset Planning
Giving gifts to children is a very common practice among the Chinese. But it must be handled with great care. Especially if the giver is not a U.S. citizen or green card holder, gifting assets requires careful planning. Improper donations may have unnecessary tax consequences. A well-thought-out estate plan can significantly reduce gift or estate taxes and leave the most assets for your children.