Why You Need It And Where To Find It - Estate Planning Tax Advice
The objective of this discussion is to review some of the myths and realities of estate planning. A number of articles have been written on the subject but let's see if we can't put a different spin on it by keeping it simple. By dispelling some of the common misconceptions, we will have a better understanding of how important it is to take positive action to keep our estate plans in order.
The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) threw many individuals for a loop when it came to estate plannings. Tax laws are never simple but EGTRRA added a level of confusion rarely seen in advanced planning. For instance, between now and 2011 the federal estate tax is scheduled to decrease, disappear and then spring back to life. According to a Wall Street Journal article dated May 11, 2005, the "...current estate tax law puts estate-tax planners in an impossible situation...". With such uncertainty, some potentially damaging estate planning myths have surfaced. These financial "urban legends" stand in the way of prudent estate planning. We will address some of the most prevalent and most common estate planning myths so we can be better informed. Myth. The Federal Estate Tax was repealed.
If you find that they are, it will be worth your while to discuss with an expert the estate planning tax strategies which will let you preserve as much of your assets as possible for your heirs. These strategies can include things placing your assets into a living so that you can control them during your lifetime, and prevent them from being included in your taxable estate when you die. Having a living trust will also benefit your heirs, because it will exempt you assets from being tied up in the expensive and lengthy probate process.
Getting estate planning tax advice on a continuing basis is important, because you may have to adjust your estate planning strategies as your financial situation and/or the estate tax laws change. Consulting with an estate planning tax expert as your circumstances change will ensure that your heirs are not left with any unpleasant surprises and that your final wishes will be honored as you desired.
A significant portion of your assets might be vulnerable to estate taxes after you die. However, there are ways to leave behind an estate without losing most of it to taxes. It is important that you consult with a qualified attorney to discuss the most strategic methods for establishing your unique plan. A well-crafted plan will ensure that your beneficiaries get the most benefit from your years of hard work.
Instead of repeal, reform of the federal estate tax is a possibility. Several key lawmakers were up for re-election in 2008 and they would have liked to see the estate tax issue resolved prior to Election Day. Such did not happen. Almost everyone agrees that something needs to be done to make the federal estate tax more predictable and user friendly. It seems that the current political climate could be the right time for reform. One possible reform is to freeze the 2009 rates and exemption amounts for 2009 and beyond with an exemption amount of $3.5 million per estate and a top tax rate of 45%. Only time will tell what happens, but one thing is certain, doing nothing and waiting for Washington to fix things is probably not in your or your family's best interests.
The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) threw many individuals for a loop when it came to estate plannings. Tax laws are never simple but EGTRRA added a level of confusion rarely seen in advanced planning. For instance, between now and 2011 the federal estate tax is scheduled to decrease, disappear and then spring back to life. According to a Wall Street Journal article dated May 11, 2005, the "...current estate tax law puts estate-tax planners in an impossible situation...". With such uncertainty, some potentially damaging estate planning myths have surfaced. These financial "urban legends" stand in the way of prudent estate planning. We will address some of the most prevalent and most common estate planning myths so we can be better informed. Myth. The Federal Estate Tax was repealed.
If you find that they are, it will be worth your while to discuss with an expert the estate planning tax strategies which will let you preserve as much of your assets as possible for your heirs. These strategies can include things placing your assets into a living so that you can control them during your lifetime, and prevent them from being included in your taxable estate when you die. Having a living trust will also benefit your heirs, because it will exempt you assets from being tied up in the expensive and lengthy probate process.
Getting estate planning tax advice on a continuing basis is important, because you may have to adjust your estate planning strategies as your financial situation and/or the estate tax laws change. Consulting with an estate planning tax expert as your circumstances change will ensure that your heirs are not left with any unpleasant surprises and that your final wishes will be honored as you desired.
A significant portion of your assets might be vulnerable to estate taxes after you die. However, there are ways to leave behind an estate without losing most of it to taxes. It is important that you consult with a qualified attorney to discuss the most strategic methods for establishing your unique plan. A well-crafted plan will ensure that your beneficiaries get the most benefit from your years of hard work.
Instead of repeal, reform of the federal estate tax is a possibility. Several key lawmakers were up for re-election in 2008 and they would have liked to see the estate tax issue resolved prior to Election Day. Such did not happen. Almost everyone agrees that something needs to be done to make the federal estate tax more predictable and user friendly. It seems that the current political climate could be the right time for reform. One possible reform is to freeze the 2009 rates and exemption amounts for 2009 and beyond with an exemption amount of $3.5 million per estate and a top tax rate of 45%. Only time will tell what happens, but one thing is certain, doing nothing and waiting for Washington to fix things is probably not in your or your family's best interests.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Quick Loans - Designed For Your Urgent Needs You have full permission to reprint this article provided this box is kept unchanged.
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