Protecting assets up to the point when they are passed down to loved ones, should be a primary estate planning objective in every estate plan. That requires you to consider – and ultimately reduce -- the impact gift and estate taxes will have on your estate at the time of your death. Toward that end, let's look at four ways to avoid gift and estate taxes. What Is the Federal Gift and Estate Tax? The federal gift and estate tax is essentially a tax on the transfer of wealth. Both transfers … [Read more...] about 4 Ways to Avoid Gift and Estate Taxes
Gift Tax
Ins and Outs of Inheriting an IRA
What are the tax implications of an inheriting an IRA? The answer depends on several factors: Is it a traditional IRA or a Roth IRA? The funds in a traditional IRA have never been taxed and will be taxed as they are withdrawn. Roth IRAs contain post-tax dollars and are not again taxed upon their withdrawal. Is the beneficiary of the IRA a spouse, a non-spouse person, or a charity? When the beneficiary of an IRA is the spouse of the IRA owner, the spouse will have a number of … [Read more...] about Ins and Outs of Inheriting an IRA
Taxes and Inheritances: Planning and Coping
When someone passes on, his or her assets are typically left behind to a beneficiary. If you find yourself the recipient of money, you may have a big question on your mind: will I have to pay taxes? Before we go any further, remember this: it is a good idea to speak with a qualified estate planning attorney to ensure that you are paying all necessary taxes. Whether or not you are required to pay inheritance tax depends on how much money you are receiving, the state in which you live, and … [Read more...] about Taxes and Inheritances: Planning and Coping
Understanding the Annual Gift Exclusion
One part of overall estate planning is considering how to minimize taxes as much as possible. This includes not only estate taxes but also gift taxes. When you transfer ownership of property, even as a gift, the IRS will impose a tax. There are some exceptions or exclusions to the gift tax that is typically imposed. Here is what you need to know. First, what is considered a gift? According to our federal government, a gift is “any transfer to an individual, either directly or indirectly, … [Read more...] about Understanding the Annual Gift Exclusion
