Estate Planning

Reduce Estate Taxes using Estate Planning

As with a Tax attorney, a dollar spent on an Estate Planning attorney can save you many times that in lower taxes. The USA has the most complex tax and estate planning realities. That is why it is critical to be proactive. If we refer you the consultation is free. Each state in the USA has different estate planning realities.

Living Trust Estate Planning: Whether you are single or married, young or old, having an experienced attorney prepare a proper living trust estate plan can help you and your family in a number of ways. You can avoid the need for a court-appointed guardian for you if you become incapacitated (called a Conservatorship), and you can decide who will handle your business affairs, investments, caring for your family, and making medical and health care decisions for you. Your family can also avoid having to go through the long, expensive and completely public “Probate” process, where a judge supervises the distribution of your property to your spouse, partner, children, or other heirs. If you have young children, you can also plan for their care and comfort if something happens to you while they are still young.

If you have a very large estate, then solid planning can reduce or even eliminate the federal estate tax, also known as the “Death Tax.” This is a federal wealth transfer tax that applies when you die, and it is based on how much you own and who will be receiving it after your death.

If you own a business, it may be worth more than you realize and there can be estate tax implications. Once you die and the business is valued, if your total estate is greater than $5,430,000, the “extra” amount will be subject to federal estate tax (“Death Tax”) when it is passed on to your family.

For example, an $8,000,000 estate today will have $2,570,000 of taxable estate, with an estate tax of $1,028,000 on that amount. Proactive estate planning which can reduce or even eliminate that tax. The alternative may be the forced sale of your business in order to generate the cash needed to pay off the IRS. The creative use of life insurance can also enable your family to pay off that tax bill for pennies on the dollar.

209-814-6865 | JLM@BankingLikeTheRich.com

Disclaimer: The material presented on this site is included with the understanding and agreement that BankingLikeTheRich.com is not engaged in rendering legal or other professional services by posting said material. U.S. Treasury regulations require us to inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, by any person or entity for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. The services of a competent professional should be sought if legal, accounting, tax or other specific expert assistance is required.