An angel investor is someone who invests in a startup or new small business with the aim of achieving large returns. Those returns are then used to help friends, family members or their favorite charities. It may be beneficial to start giving prior to death as it transfers a portion of those returns outside of the taxable estate. This may lower a Nevada resident’s federal estate tax burden while also helping to establish a legacy during life.
Assets that are placed in a trust may be kept safe from creditors or from the effects of divorce. The language of a trust can be highly customized to ensure that money is being used for worthwhile causes such as college tuition or a new home. If an asset has appreciated through the years, it may make more sense to gift that asset to a charity as opposed to a family member.
This is because the person giving the gift may get a full market value deduction. Angel investors are advised to keep good records of all the investments that they made. Doing so may make it easier to determine their valuation and lower the odds that beneficiaries or others pay higher tax rates than necessary.
People who have assets that they would like to pass on to future generations may benefit from trust planning. They may want to meet with an attorney about what the process entails. Legal counsel may also be beneficial to people who would like assistance in reviewing an existing trust to ensure that it still meets their financial and family needs.