Plannning For The Future is Wise For Everyone
Author: Keith Huggett
Estate tax planning is not just for the wealthy. If you have enjoyed some financial success, it's wise to think about the future and how you want your savings to be allocated. While this can be a difficult decision in itself, it has only been made more complicated by recent changes to the tax laws. For 2013, taxable estates worth more than $1 million will be subject to the federal estate tax. This is a major change in contrast to previous years when the threshold was closer to $5 million.
What does this mean for estate tax planning? If your household assets exceed the minimum threshold, your estate may be subject to a higher tax. However, if you work with a qualified financial adviser and plan wisely, you may be able to avoid this. Many families choose to dissipate or transfer their wealth to avoid the estate tax. Some of the ways to do this include:
- Gifting cash to relatives
- Paying for your children's medical or educational expenses
- Marital deductions
- Division of assets in a marriage
- Excluding life insurance assets from the estate
- Smart retirement saving strategies
- Charitable trusts
It is still possible that the new estate tax law will be repealed or modified, but in any case, working with a professional financial planner can help you maximize your savings both now and in the future.
If you need help with estate tax planning or any other financial issues, call The Tax Office, Inc. today to learn more about our personal and business tax services. Tax planning is something you should be doing on an ongoing basis, not just at the end of the year. Schedule an appointment today to get started.
