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Estate Planning
How can you prevent your estate from getting into the hands of people you don't even know?
Don't let the government be the biggest heir to your estate. In addition to nearly half of your legacy being extracted for estate taxes, additional taxes may apply - such as the 48% generation-skipping tax if they leave assets to their grandchildren.
What can you do about it?
Talk to an attorney about planning techniques. Among issues you should discuss are techniques that can reduce estate taxes without requiring you to reduce the size of your estate by giving away your assets to children or grandchildren during their lifetime - something that you may not want to do.
Keep your assets, but give away your taxes!
Although taxes are still due, rather than giving away assets, understanding the economics of life insurance lets you keep your assets and estate intact.
How? By creating a source of funds to help pay estate tax liabilities through affordable premium payments in the form of a gift to an Irrevocable Life Insurance Trust. Often, the premium payments are only 2-5% of the total estate tax per year.
Understanding the Economics of Life Insurance
Insurance on you and/or your spouse's life can be set up to provide their beneficiaries: No federal estate tax, No state inheritance, and No federal or state income tax. Although a trust is not necessary to get all of the tax benefits, it is usually recommended you have an attorney set up a trust to own the insurance policy and distribute the proceeds.
* The information provided on this website is not intended as tax or legal advice. Individuals should consult their tax or legal professional regarding their specific circumstances.
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