What Is Legacy Planning from Barry D Horowitz There are steps that you can take to ease the burden so that you can maximize your financial legacy. Learn more about Legacy Planning in this presentation.
An inheritance tax is a tax that would be levied on distributions to every inheritor who is not exempt from the tax. In other words, there could be multiple impositions of an inheritance tax when one estate is being distributed among the heirs. The states have the ability to impose state-level inheritance taxes, but most states are not exercising this option. Only six states in the union have state-level inheritance taxes, and fortunately, Connecticut is not among them. The states with state-level inheritance taxes are New Jersey, Pennsylvania, Maryland, Nebraska, Iowa, and Kentucky. Topics covered in this report include: Inheritance Taxes Estate Taxes Click here to read the whole article or download the PDF.
When you are planning your estate, you should create a statement of net worth to inventory your assets. This is simply a balance sheet. You enter your assets and liabilities, and you determine exactly what you have to give to your loved ones, and you gain an understanding of your debt. This is important for multiple different reasons. Estate tax exposure is one important thing to take into consideration when you are evaluating the extent of your assets. The federal estate tax can heavily impact your legacy, given the fact that it carries a 40 percent maximum rate. The estate tax is a factor for people who have been very successful from a financial standpoint, but most people do not pay the tax. There is a federal estate tax credit or exclusion. This is the amount that you could transfer to people other than your spouse tax-free. In 2015, the amount of this credit is $5.43 million. Life Insurance Proceeds If you have insurance policies on your life, and they are in your personal posses
The probate court would not be involved in the transfer. This can sound like a turnkey arrangement, but you have to understand the fact that the person that you add to your title as a joint tenant would own half of the property immediately. As a result, the joint tenant would have to sign off on the sale if you wanted to liquidate the property. Plus, the property could be attached if the joint tenant was to run into legal or financial difficulties. Topics covered in this report include: Payable on Death Accounts Life Insurance Proceeds Property Held in Joint Tenancy Revocable Living Trusts Click here to read the whole article or download the PDF.
What Is the Cost of Probate? from Barry D Horowitz A noticeable portion of the estate can be swallowed up during probate. These expenditures reduce the inheritances that will be received by the heirs. Learn more about probate and its cost in this presentation.
Many people contribute into individual retirement accounts or IRAs, and the primary purpose for most people is the development of a retirement nest egg. An IRA can indeed be an essential part of your retirement plan, but under some circumstances, an IRA could be used for estate planning purposes. Let s look at the details. Roth Individual Retirement Accounts One type of individual retirement account is the Roth IRA. With this type of account, you make contributions after you pay taxes on the income. As a result, if and when you take distributions, they are not subject to taxation. You can begin to take penalty-free withdrawals when you are as young as 59.5 years of age. You are not required to take mandatory minimum withdrawals at any time when you have a Roth IRA. As a result, if you are in a financial position to do so, you could allow the account to grow tax-free throughout your life, and you could bequeath the account to a beneficiary. If the beneficiary is someone other than your
You may not take estate planning especially seriously if you are not aware of the facts. Some people figure that they can simply create a last will when they are old and gray, and that is the long and short of it. Indeed, studies are conducted periodically, and they consistently find that most people have not executed the appropriate estate planning documents. In this blog post, we will endeavor to provide some food for thought, and hopefully, you will recognize the need to take action if you are currently unprepared. Estate Taxes If you are in possession of a considerable store of resources, estate taxes could significantly impact the legacy that you want to leave behind to your loved ones. There is a federal estate tax, and it is applicable on asset transfers that exceed $5.43 million. The tax carries a 40 percent maximum rate. There are a number of states in the union that impose state-level estate taxes. We practice in Connecticut, and Connecticut is one of these states. The Conne