Peak Asset Management, LLC, Colorado’s Post

I started reading Morgan Housel’s blog and listening to Shane Parish’s podcast about ten years ago. They both had a big impact on my decision to ultimately pursue investing and wealth advisory as a career. After following their content for all these years, it's fun to hear them in conversation together on one of the latest episodes of the Knowledge Project. I particularly love Morgan's comments about "being average for an above-average period of time" as an investor. Keep it simple and boring... rinse and repeat.

If you are a business owner and you’d prefer to have your children inherit your business, you can transfer this business interest to them within your estate planning documents. Alternatively, transferring your business to your heirs during your lifetime can accomplish personal goals and provide additional tax benefits. By gifting the business over time, you can gradually transfer ownership and control to your children, assisting them with the management of the business, while providing valuable insights on how the business operates. Transferring your business interests gradually over your lifetime also has the potential added benefit of curtailing gift and estate taxes.   Gifting the business interests can minimize gift and estate taxes because:   1. Any gift transfers both current value and future appreciation of the business to your heirs. Otherwise, the appreciating business interest stays on your balance sheet until passing, and the entire interest can be exposed to estate tax. 2. You can take advantage of the annual gift tax exclusion amount each year with each gift. These are gifts that do not utilize any of your available lifetime tax free gifting exclusion. The current annual exclusion amount is $18,000 for 2024 per person. 3. The current aforementioned lifetime tax free gifting exclusion is $13,610,000 for 2024. Spouses can double this exclusion amount ($27,220,000 per couple) for gifting purposes. 4. Partial interest transfers, as with certain types of trusts and entities such as LLCs or partnerships, may be valued at a discount due to marketability, lack of control and minority interest reasons. This means that the actual value of the transfer is reduced, which results in less of the above referenced exclusions being utilized per transfer.   Legacy planning and business succession planning can be daunting. Peak Asset Management is well equipped to assist business owners make fully informed and smart financial and tax planning decisions related to the transfer of your business. We are here to help.

We’ve been focusing recently on the issue of housing unaffordability in the US and the impact it has on financial planning for families. Many Millennial and Gen Z home buyers are turning to their families for alternative solutions to the conventional home mortgage process. There are numerous ways for parents to assist their children in purchasing real estate, such as intra-family loans, gifting, co-signing a mortgage, or putting a house into a trust. Factors to consider when deciding which method is best include repayment (if desired), asset protection, and affordability (from the parents’ and the child’s perspective).

We’ve written in the past about unaffordability in US Housing prices due to persistent undersupply of homes and higher borrowing costs. While there are many ways to structure a joint home purchase, Millennial and Gen Z home buyers and their families are increasingly turning to gifting as a strategy to bridge the gap. Other ways parents can assist their children with real estate purchases include co-signing the mortgage, loaning the down payment, buying the property with intent to gift to children down the road, or utilizing a Qualified Personal Residence Trust. https://lnkd.in/gHusyqxE.   Advisory Services offered through Peak Asset Management, LLC, an SEC registered investment advisor. This is not an offer to buy or sell securities. This company profile is for informational purposes only and its contents should not be construed as a recommendation nor an endorsement of Peak Asset Management. The information contained herein cannot, and should not, be used in making investment decisions. Investors should carefully consider the investment objectives, risks, charges and expenses associated with any investment.