From Instagram influencers that flaunt another exotic vacation to Jounez down the block (you know, those you have to keep up with), building a giant addition to your already palace home, many people seem to be a wealth as an achievement in themselves. However, really smart people with high incomes know that wealth is not for parading, which is to grow and share generations.
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Certified financial planners work with these high -income winners to help them turn the original seed of wealth into a thriving garden that will nourish their heirs and even descendants who will never meet. As these planners build relationships with their high-income customers, they refine the most smooth, most effective strategies for the transfer of wealth.
To better understand these strategies, Gobankingrates talks to Scott Sturgeon, founder and senior wealth advisor at Oread Wealth Partners, how people with high incomes can guarantee that their wealth is transmitted according to their wishes.
If you already like to give gifts, you are lucky. Sturgeon says one of the easiest ways to transfer wealth involves giving money or other assets to family members every year. However, you should be careful that the amounts of the gifts remain below the annual exclusion of the tax on the gifts, which is $ 19,000 per recipient in 2025.
“An annual exclusion can be a great method of transferring a shameless wealth, since the limit is actually applied by one person to another person,” he said.
In essence, if a wealthy wedding couple wanted to make a significant gift to their daughter and her partner, anyone could give $ 19,000 to both her daughter and her partner, a total of $ 76,000. If they have multiple children, they can continue to submit an exclusion limit for each recipient.
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Education is a worthy investment – one that deepens the mind while expanding the opportunities to work and gain potential. It is also an intelligent and quite common tool for transferring wealth, especially by financing a 529 college saving plan.
“Most countries provide state -level tax deduction up to a certain amount of funds transferred to 529,” Sturgeon said. “Assets can grow without taxes in the account and as long as they are withdrawn to cover certain educational costs, it is also tax -free.”