With President-elect Trump’s inauguration day approaching quickly, upper-middle class investors can take proactive steps to secure their financial future. Experts like Blake Harris and Raul Gastesi recommend diversifying assets, focusing on estate planning, and safeguarding wealth through offshore trusts.
Diversifying Assets
Experts warn that the economic outlook is uncertain due to potential volatility in the US financial systems. To hedge against these risks, high-net-worth individuals can consider moving some of their assets outside of the US. Establishing accounts or investments in stable foreign banking systems, such as Switzerland or Singapore, offers privacy and jurisdictional stability.
“Estate planning is essential for upper-middle class individuals, particularly in times of uncertainty,” said Raul Gastesi. “With the potential sunset of Trump-era tax cuts in 2025, now may be a good time to plan out one’s estate.”
Estate Planning Strategies
Gastesi recommends considering the following three strategies:
1. Grantor Retained Annuity Trusts (GRATs): Allows tax-efficient wealth transfers while taking advantage of the current exemption.
2. Dynasty Trusts: Protects assets for multiple generations within the current framework.
3. Irrevocable Life Insurance Trusts (ILITs): A strategy to leverage life insurance for estate tax planning.
Safeguarding Wealth Through Offshore Trusts
Blake Harris suggests setting up an offshore trust leading up to Trump’s inauguration. He notes that the “loser pays” system is unlikely to be implemented immediately, and high-net-worth individuals can proactively shield their assets by establishing offshore trusts in jurisdictions known for strong asset protection laws.
Offshore trusts provide legal and financial insulation from lawsuits, ensuring that personal wealth remains protected regardless of the litigation environment in the US. This move is critical in an era where frivolous lawsuits and jackpot jury awards pose ongoing threats to substantial wealth.
Source: https://finance.yahoo.com/news/trump-economy-begins-3-money-140107977.html