Taxes

There is a veritable alphabet soup of acronyms to contend with when you are trying to find out information about estate planning.  One of these is the ILIT or irrevocable life insurance trust. These vehicles can provide people with tax savings and we would like to offer a brief explanation of ILITs here. It is important to understand the fact that the federal estate tax can be imposed on life insurance proceeds if the policy is owned by the deceased.  In an effort to avoid this, you … [Read more...] about ILIT Can Deliver Tax Efficiency

It is important to understand the fact that estate planning is not a "one and done" kind of thing. There are events take place in your own life that call for estate plan updates and as we all know the only certainty is change.  But in addition to the twists and turns that are specific to you and your family, there are also things that take place that can impact your existing estate plan that are outside of your control such as changes to the tax laws.  With this in mind let's examine … [Read more...] about 2012 Could Be A Good Year For Gift Giving

Taxation can take its toll when you are attempting to transfer assets to your loved ones both during your life and after your passing.  While it makes sense that you could choose to simply give gifts to your family members while you are still alive, you do have to contend with the gift tax if you choose to go this route. The gift tax carries the same 35% rate as the estate tax right now, but the maximum rate of both of these taxes is scheduled to rise to 55% in 2013.  Though there … [Read more...] about FLP Can Deliver Tax Efficiency

A lot of people have criticisms with regard to the state of the world around them, and there are those who merely complain about it and there are others who take action in an effort to make a difference. This is something to keep in mind when you are shaping your legacy.  It is not uncommon for individuals to have philanthropic urges as they sit back and contemplate their life's work, and as a result charitable giving is a part of many legacy plans. To give intelligently you are going to … [Read more...] about Finding The Right Charities

One of the things that can be very difficult to digest when you are planning for the inevitable is the fact that you will no longer be around to provide guidance for your loved ones.  While it is true that proper estate planning can make things easier for your heirs financially, there are some things that money can't buy and the wisdom of our elders is one of them.  And on top of this that very money can sometimes do more harm than good depending on the individual involved and this is … [Read more...] about Inheritance Planning Can Include Facilitating Educational Opportunities

There are a number of reasons why many individuals feel as though the estate tax is patently unfair.  One of them is the fact that the estate tax is an instance of double taxation.  The assets that comprise your estate were accumulated with funds that you were able to hang onto after paying all sorts of taxes including income tax, payroll or self-employment tax, sales tax, property tax, etc. These resources are not taxable while you are alive, but your death is somehow viewed as a … [Read more...] about Estate Tax: A Punishment For Success?

Everyone has their area of expertise, and in your business you have probably seen what happens when people try to take things into their own hands without the proper experience and training. The same thing happens in the field of estate planning, and sometimes the biggest mistake is pure inaction. Depending on the form of your assets, your specific objectives and the size and scope of your holdings, the utilization of any number of financial instruments may be called for.  The key is to … [Read more...] about Trust Creation Can Provide Tax Savings