Less: Federal capital gains tax (15%) $1,200,000 $1,200,000 Equals: Net assets after federal tax $8,800,000 $8,800,000 Less: Massachusetts capital gains tax $0 $424,000 (5.3%) Equals: Net assets after federal and $8,800,000 $8,376,000 state tax Plus: Appreciation on net assets over $15,759,460 $15,000,140 ten year period, at 6%/year Additional value realized by creating $759,320 $0 the New Hampshire APT shelter trust The and progressive trust statutes offer Massachusetts Granite State’s modern families and their attorneys and wealth advisors the proverbial opportunity to have their cake and eat it too. Massachusetts resident advisors can carry out to the fullest extent a the trust without having to sacrifice their trustee’s fiduciary duty “to preserve property,” client relationships. To be sure, careful attention must be paid to structuring the trust properly to optimize the benefits of favorable trust jurisdiction. Rewards for this attention to detail include long term security, investment flexibility, confidentiality and mutually beneficial wealth preservation.
Less: Federal capital gains tax (15%) $1,200,000 $1,200,000 Equals: Net assets after federal tax $8,800,000 $8,800,000 Less: Massachusetts capital gains tax (5.3%) $0 $424,000 Equals: Net assets after federal and state tax $8,800,000 $8,376,000 Plus: Appreciation on net assets over ten year period, at 6%/year $15,759,460 $15,000,140 Additional value realized by creating the New Hampshire APT shelter trust $759,320 $0 The Granite State’s modern and progressive trust statutes offer Massachusetts families and their attorneys and wealth advisors the proverbial opportunity to have their cake and eat it too. Massachusetts resident advisors can carry out to the fullest extent a trustee’s fiduciary duty “to preserve the trust property,” without having to sacrifice their client relationships. To be sure, careful attention must be paid to structuring the trust properly to optimize the benefits of favorable trust jurisdiction. Rewards for this attention to detail include long term security, investment flexibility, confidentiality and mutually beneficial wealth preservation.
Primer_on_NH_APT_Shelter_Trust_(August_2012_MK).docx