Estate Planning
While the Federal Tax Cuts & Jobs Act of 2017 allows exmptions for individual estates in excess of $11,200,000 and joint (married) estates over $22,400,000 (as indexed); the Federal estate tax rate due over these thresholds is 40%. Fortunately it is estimated less than 0.2% of estates will face a Federal Estate Tax and for most individuals and families this is good news.
However, the individual states often have separate estate or inheritence taxes that apply. For example, Massachusetts estates are subject to taxes if the descendant’s estate is over $1 million, Rhode Island over $1.5 million and Connecticut over $2.6 million. If you are concerned about passing on a legacy to heirs, it is important to plan in advance. The proper timing and transfer of assets to heirs can save thousands (or millions) of dollars in transfer taxes and probate fees.
Your taxable estate includes ALL property owned by decendents including real estate, life insurance proceeds, retirement accounts, securities, bank accounts, business interests, etc.
You've spent a lifetime saving for your future (and that of your children and grandchildren) by paying off debts and mortgages, purchasing life insurance to protect your family, building and growing a business, etc. All of this can be subject to estates taxes and unless you start planning now, your loved ones may find their inheritance has been substantially reduced simply due to a lack of proper planning.
Although estate planning is commonly associated with wealth preservation for high net worth individuals, it is also used by moderate net worth individuals and families to meet other needs and concerns such as:
Providing extended support for special needs children/adults.
Directing transfers of family assets outside of your will.
Making substantial charitable contributions or establishing a foundation.
Tax leveraging transfers of IRA's or qualified plan assets to non-spouse heirs.
Mimimizing or pre-funding estate taxes and settlement costs.
Accumulating tax advantaged retirement savings while reducing estate taxes.
Advanced gifting to heirs that are exempt from estate and income taxes.
Leveraging appreciated assets with estate and income tax savings.
Addressing conflict surrounding estate distribution with multiple families.
Many individuals are aware of these concerns but may not be aware of all the options available to address them. While individuals usually obtain needed legal documents from qualified legal counsel, they overlook implementing the needed funding to complete their plans. We can work with you and your attorney to design and implement funding options that are suited to your needs, goals and budget.
To further discuss your concerns and alternatives; please feel free to contact me by email or phone.