Sunday, July 15, 2012

Brother, Can You Spare $10 Million?

Bloomberg seems worried: Rich Passing Up $10 million Opportunity to Gift Tax-Free. According to one survey of CPAs, fewer than 10 percent of people with $10 million or more have used any of their federal gift tax exemption or plan to do so.

As the Bloomberg report indicates, the generous gift-tax exemption now available can be helpful to owners of exceptionally valuable family businesses. Otherwise, the aversion to massive gifting is understandable. Folks with $20 million or $30 million could see their net worth plummet if the Great Global Deleveraging ends badly; they don't feel they have a lot of wealth to spare. As Bloomberg notes, those with $100 million or more are likelier candidates for gifting.

Billionaires are the best bet. My State, New Hampshire, is among those seeking to attract their trust business. Glad to learn that one NH trust company has picked up six billionaire clients in the last couple of years.

Last year Mary Rowland reported on New Hampshire trusts, as well as family-office developments,  in Keeping Family Trust.

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