Georgia residents may have an idea of what it takes to transfer cash, stocks or bonds to future generations. However, it may be a little more difficult to determine how to transfer assets like a car or a famous artwork. The first problem relates to properly valuing the asset. This should be done by having it appraised by an independent professional as opposed to a previous owner or relying on an online resource.
Once its value has been established, it is important to determine who to transfer it to and how. For instance, it may be a good idea to simply sell the asset, pay the taxes and transfer any cash left over. It may also be feasible to transfer the asset directly to the beneficiary. That person will get a step-up in cost basis to the value of the asset as of the date of the owner’s death, which can reduce the taxes owed if it is sold in the future.
Other options when it comes to transferring illiquid assets include putting it in a trust or an LLC to reduce taxes owed. Those who wish to transfer assets to family members should have discussions about when and how it will happen. This can make it less likely that children or grandchildren will fight over an asset or whether an estate plan was changed because of undue influence.
Those who are want to provide for future generations may find it easier to do so with a will, trust or other estate plan documents. Working with an attorney or financial professional may help a person better understand the tax implications and other potential consequences of an asset transfer.