Us Quick Quote Freeze Asset Values with a Split-interest Trust Just as a divide and conquer strategy has won many battles for determined generals, splitting the legal ownership rights in your assets may win freedom from transfer taxes for the future growth of your family's wealth. Reducing potential future taxes requires professional planning.
Strategies are available for freezing the taxable value of appreciating assets at present levels.
Each of these trusts involves an irrevocable legal commitment to transfer the trust assets to members of your family at a specified future date. In the interim, you retain an interest in the property. When you establish the trust, you will have to pay any gift tax that is due on the present value of the property transferred, minus the value of your retained interest. Use of the trust will push the gift-tax value of the transfer below the home's current market value and may eliminate any future appreciation from your estate. The trust holds legal title during your occupancy period and transfers title to the family member when the trust term ends.