Advanced Estate Tax Planning
You work your whole life to save, and make worthy financial decisions so that you can have adequate funds when you retire, and then, with any luck, leave a little to your loved ones after you pass away. Along life’s journey, you pay taxes… income taxes, property taxes, sales tax, ect.. At the completion of the day, the government wants to tax you one last time, after you pass away on whatever you have left. This is known as the federal estate tax (it is also called the inheritance tax or death tax).
What You Need to Know
The estate tax is not connected to the income tax, and is paid on the net worth of all your belongings, including life insurance, owned at your passing in excess of the exempt total.
The estate tax rate is currently 45% (and it has gone as high as 55% in recent times)
For most families, estate taxes are entirely voluntary. Only persons who do not plan will wind up paying estate taxes
The initial step is becoming knowledgeable: is this something that is necessary for your family?
If you have a great estate, you will want to think through what tactics are offered to diminish your interaction with the federal estate tax. There are many “tools in the toolbox” and once we do an analysis of your belongings and values, dreams and hopes, we will then be able to build an advanced estate plan that is perfect for your family.
To determine what options are accessible to you; contact my office to schedule your Family Asset Planning Consultation.
Advanced Estate Tax Planning Strategies
The largest enemy in tax planning; It isn’t the IRS, its putting it off too long! For the greatest outcomes, begin your tax planning as soon as you can. The sooner the planning starts, the more tax savings can be recognized and the easier it is to do so.
Advanced estate tax planning concentrates predominantly on decreasing taxes, explicitly the three taxes most regularly imposed on the transferal of assets: the gift tax, the estate tax, and the generation-skipping transfer tax.
Advanced estate planning normally contains tactics such as:
- Life insurance trusts;
- Qualified personal residence trusts;
- Grantor retained annuity trusts;
- Asset protection trusts;
- Land trusts;
- Dynasty Trusts (Protection against the generation-skipping transfer tax);
- Family limited partnerships and/or limited liability companies;
- Asset gifting; and
- Reduction of estate taxes.
Instead of being taxed profoundly after you pass away, plan for the future so that you can leave the full inheritance conceivable for your loved ones.
Schedule your Family Asset Planning Consultation to discover what options are available to you or attend one of my office’s Family Asset Planning Consultation seminars that are offered throughout the year.