Palo Alto Family Protection Trust Attorneys

Maximize Your Legacy: Family Protection Trusts in Palo Alto

FPTs confer numerous benefits, including the avoidance of many types of transfer taxes. Assets placed in an FPT also typically enjoy high levels of asset protection.

Maximizing Your Estate: The Power of FPTs in Tax Planning

As of 2024, an individual can transfer up to $13.61 million into their FPT without those assets being subject to federal estate or gift taxes. Married couples can transfer up to $27.22 million. 

Strategic Asset Transfers to Avoid Federal Estate Taxes

If you wish to avoid federal estate taxes entirely, your estate’s total value must not exceed $13.61 million (as of 2024). Assets placed in an FPT do not count toward estate value calculations. This means you can transfer assets to your FPT to avoid exceeding the federal estate tax threshold, allowing you to simultaneously benefit future generations and enjoy immediate tax relief.

Protecting Your Heirs: Divorce and Lawsuit Safeguards

Assets inherited from an FPT are typically protected during a divorce. In a California divorce, all community property – assets shared by the married partners – is subject to equal division. FPT assets are segregated and thus do not become community property assets. This allows your children to retain their inheritances even if they must endure contested divorces. Given that over half of U.S. marriages end in divorce, this can prove to be a significant form of protection.

Asset Protection Against Lawsuits and Debts

FPT assets also enjoy strong protections in the event that a beneficiary is sued or is in default on a debt. Assets in an FPT are not owned by the trustor or beneficiaries and are consequently (in most cases) unreachable by litigants or creditors. It should be understood, however, that inherited assets that are in your child’s name are fair game and can be accessed by a successful litigant or a creditor who secures a court judgment.

Generational Wealth Preservation: The GST Tax Advantage

The FPT’s ability to circumvent generation-skipping transfer (GST) taxes is perhaps its most compelling and well-known feature. All or most assets left in this trust for the benefit of your child will not be counted as part of your child’s estate upon their passing. This can potentially save millions of dollars for your grandchildren and great-grandchildren. 

Secure Your Family's Future with Our Palo Alto Trust Attorneys

Taking the initiative to establish an FPT now can ultimately produce enormous dividends, as all of these key benefits will generally remain intact for the benefit of your grandchildren. Our Palo Alto Family Protection Trust lawyers at Gilfix & La Poll Associates LLP are committed to helping you provide for your loved ones now and in the future. We can establish an FPT that works to achieve your goals and protect your family’s financial security.

Ready to Establish Your Family Protection Trust? Contact Us Today

If you are interested in learning more about the advantages of Family Protection Trusts, do not hesitate to call (650) 683-9200 or contact us online to schedule a consultation with our Palo Alto family protection trust lawyers.