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Wealth transfer strategies

Date posted:  1/2/15 02:45:00 PM It's never too early to consider a wealth transfer strategy.

For those with strong financial footing, there are few things as important as helping secure the livelihood and legacies of loved ones. That's why it is never too early to consider wealth transfer strategies.

Over the next few decades, millions of Americans will go through a wealth transfer process, which means planning ahead could make a world of difference to your heirs. You've worked hard to achieve financial success, and your family and loved ones - not Uncle Sam - deserve to be the benefactor.

You can avoid tax consequences by giving away $14,000 of assets or non-cash property per year to as many people as you like without it counting toward the lifetime gift tax exemption of $5.43 million, according to the Financial Planning Association. The earlier you start, the bigger piece of the pie you'll leave behind.

"Avoid tax consequences by giving away $14,000 of assets or non-cash property per year."


Don't be one of the 3,700 estates estimated to owe such a tax this year. Let UMB's dedicated private bankers craft a wealth transfer strategy that fits your needs. After all, the top estate tax rates on amounts above the exemption is 40 percent, and who wants to pay the government when that money could go to your family?

Another way to pass assets along to your heirs is by converting a traditional IRA into a Roth. While a traditional IRA offers tax deductible contributions on both state and federal returns, withdrawals in retirement are taxed at an ordinary rate. Meanwhile, there are no contribution benefits of a Roth IRA, but withdrawals and earnings are typically tax-free, according to In simpler terms, a traditional IRA allows you to avoid taxes when depositing money, while a Roth IRA allows you to avoid taxes when withdrawing during retirement.