4: Minimizing Your Tax Liabilities
Estate Planning
1: You Need a Good Estate Plan 2: What is a Good Estate Plan? 3: One Size Does Not Fit All 4: Minimizing Your Tax Liabilities 5: The Basic Planning Tools 6: Who Can Help You 7: What Are You Waiting For?
Sample Bequest Language
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Virtually everything you own or control may be subject to estate, inheritance, gift and generation-skipping taxes, which can substantially reduce what you pass on to your heirs.
The new tax laws have moved the dial on federal estate tax. If the value of your taxable estate is less than the federal estate tax exemption at the time of your death, it will not be taxed by the federal government. ($11,200,000/individual, and rising beginning in 2018 through 2025). But for estates valued over that amount, creative estate planning can avoid or minimize tax liabilities. Keep in mind that many states still have an estate or inheritance tax on distributions to non-charitable heirs.
Things You May Want to Consider
- Sometimes you can benefit from giving up control of an asset during your lifetime.
- New tax laws may impact your current plan. It's always a good idea to review your estate plan every few years with an advisor.
- Creative planned gifts can be a simple and fulfilling way to receive a tax benefit while providing for a meaningful legacy.
Consider making a gift through your will or trust.
Here's the language you'll need.
Next: The Basic Planning Tools
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