How angel investors can pass on wealth in trusts

On Behalf of | Oct 17, 2016 | Blog

Angel investors in Nevada may want to give some thought to how they will protect their wealth to pass on to beneficiaries. However, estate planning is not just about what happens after an individual’s death. There are a number of ways that people can begin taking steps to protect those assets while they are still alive.

For example, angel investors involved in a startup can set up a trust for their children to shield those assets. A trust can also protect assets from creditors or divorce. Trusts can aid young adults in learning how to manage their money. Similarly, an investment portfolio for adult children can help them begin to learn about choosing investments wisely. A trust can be designated specifically for children to use in their education or in buying a home. Furthermore, trusts can offer protection of assets for future generations as well.

One wise strategy is to pass on assets as gifts throughout a person’s lifetime. This has the advantage of allowing a person to remove the asset from their taxable estate prior to significant appreciation in value. In contrast, charitable giving is best done after assets have appreciated. Investors should keep careful records of what they have done and share them with experts to see if there are additional opportunities they are unaware of.

People who are creating an estate plan might want to talk to an attorney about the various types of trusts available. These include charitable remainder trusts, special needs trusts and more. Estate planning also means taking steps to deal with end-of-life care. Individuals might want to create documentation that appoints people to take care of financial and health care matters if they become incapacitated. They can also leave explicit instructions about what kind of medical procedures they wish to have done or withheld if they are incapacitated.