Let's say that you have reached the point where you are sitting in your favorite chair looking out the window contemplating your legacy. You may have a general idea of what you have to give and who you are going to give it to without having worked out all the details. When you arrange for a consultation with an estate planning attorney to hash out these details, he or she is going to let you know whether or not your estate is exposed to the federal estate tax. If it is, you're … [Read more...] about Inheritance Planning In Action
Taxes
Was Estate Tax Really Repealed In 2010?
When you hear estate planning attorneys saying that it is important for the typical layperson to have legal representation you can take a cynical approach. You may assume that they are overstating the importance of legal counsel. But the fact of the matter is that the more you know about the estate tax you can see why you really need to retain an attorney and keep in touch on an ongoing basis to protect the interests of your family. Not everyone has to pay the estate tax. … [Read more...] about Was Estate Tax Really Repealed In 2010?
Estate Tax Tantamount To A Gamble
Most Americans don't mind paying their fair share of taxes, but they really don't want to pay them twice. This is one of the problems that people have with the estate tax. Your legacy was accumulated with resources that you had left over after you paid income and payroll or self-employment taxes all of your life. In addition, people pay sales tax, property tax, capital gains tax, and a number of others that are less obvious. So why should the event of your death trigger a … [Read more...] about Estate Tax Tantamount To A Gamble
Gifting Can Provide Estate Tax Efficiency
It is certainly a good feeling to know that you will be able to pass along a robust legacy to your loved ones. However, if you're in this position you may be faced with the need to gain estate tax efficiency. Right now the estate tax exclusion stands at $5 million, and the maximum rate of this federal levy is 35%. However, this does not mean that you need not concern yourself with the estate tax if your estate is worth less than this $5 million threshold. Late last year a … [Read more...] about Gifting Can Provide Estate Tax Efficiency
A Look At The QPRT
When you are preparing your legacy you not only have to arrange for the transfer of assets to your loved ones, you have to make sure that it happens without losing anything in the process. There are sources of asset erosion that exist, and the one that is most profound is the estate tax. A lot of people are under the impression that the estate tax does not apply to them because they're not among the upper crust, but in reality you can be exposed to the estate tax even if you would … [Read more...] about A Look At The QPRT
Will Revenue Be Increased By Allowing Estate Tax Relief To Expire?
It is very important to remember that estate planning is not a "one and done" kind of thing. It is an ongoing process, and it should be viewed as such. Important things that happen in your life can immediately affect your existing estate plan, and this is something to keep in mind. If you procrastinate even when you know your estate plan needs to be adjusted you are taking a gamble. And the problem with this type of wager is that you are putting your family members at risk … [Read more...] about Will Revenue Be Increased By Allowing Estate Tax Relief To Expire?
Ongoing Legislative Changes & Your Estate Plan
One of the things about estate planning that you would do well to recognize early on is the fact that it is an ongoing process. Things within your own life do not stand still, and significant life changes are going to make certain aspects of your existing estate plan obsolete. For example, if you were to get divorced you would probably want to change things around considerably. Then if you were to remarry, your family dynamic would change again and you would inevitably want to … [Read more...] about Ongoing Legislative Changes & Your Estate Plan
The “Zeroed Out” GRAT
When you think about it from a purely innocent and objective standpoint, it would seem as though estate planning is the easiest thing in the world. All you have to do is take assets that belonged to you and have them transferred to someone else after you pass away. How hard can this be? The reality is that it may not be that difficult to make this happen from a legal perspective, but the problem lies in the expenses that can be incurred while doing so. Between the estate tax … [Read more...] about The “Zeroed Out” GRAT
Tax-Free Tuition Gifts & Your Estate Plan
People who are in a position to give life-changing amounts of money to their loved ones after they pass away face a couple of different challenges. For one, there is the matter of the estate tax. At the present time the estate tax exclusion is $5 million and the rate of the tax is 35%, so any portion of your estate that exceeds $5 million will be shaved down by over a third if you don't take action to prevent it. If this wasn't bad enough, the tax relief act that was passed at … [Read more...] about Tax-Free Tuition Gifts & Your Estate Plan
A CRUT May Fit Into Your Estate Plan
People who are getting serious about preparing their assets for eventual distribution to their loved ones upon their passing often times sit back and contemplate their overall legacies. You can go through a period of very profound soul-searching during the latter stages of your life, and you may find that you would like to punctuate your legacy with some charitable giving. There are a number of estate planning vehicles that enable people to satisfy their philanthropic urges, and many times … [Read more...] about A CRUT May Fit Into Your Estate Plan
