Most estate tax plans are really death plans. You have the documents prepared (typically, a will and revocable trust), put them away for safekeeping and then, forget about them.
Unfortunately, the answer is “yes. ” The question above was sent to me in a heart-tugging letter seeking donations to a well-known diabetes charitable foundation.
Most of the concepts and strategies you read in this tax column are really answers to questions asked by readers who called our office. Also tossed into the column is a large helping of our years of experience consulting with our readers.
The key to successful tax planning is learning how to select the best tax-saving strategies to accomplish your specific goals. My job is easy: Pick the right strategies.
Buying life insurance is the best method to legally beat estate tax laws. Here’s a typical real-life example: Joe and Mary bought a $3 million second-to-die life insurance policy, which was owned by an irrevocable life insurance trust (ILIT).
Your business represents pure wealth (in current dollar value) and produces a stream of income to support you (and probably other members of your family). Someday, a portion of this pure wealth, which usually grows a bit in value each year, must go to the IRS.
Are you thinking about transferring stock to your kids, or does one or more of your kids already own stock in your closely held business? Beware: You, your family and your business could be starting on a dangerous journey—dangerous to your economic and tax health. However, all is not lost.
Raise your hand if you are the owner of a successful family business and you want your kids to step into your shoes someday. First, let’s be specific about the word “kids.
Most of the concepts and strategies you read in this column are really answers to questions asked by readers who call our office.
About three of every four callers ask a variation of this troublesome question: “What will estate planning do for me, my family and my business?” The simple answer: The “right plan(s)” will accomplish all your goals.
Joe, a 63-year-old reader of this column from Iowa, almost cried when talking to me on the phone. He said, “I still want to kick myself for thinking my estate plan was done.
