Are you sure you want to save taxes? We hear the government could really use the money!
Okay, you’re right. The government takes a big enough cut, and your estate plan should be set up to minimize all taxes. Everybody’s estate faces two primary kinds of taxes:
Income Tax – Regardless of the size of the estate, most families have some IRA’s or annuities, which can result in a large income tax bill for the family after death. However, with good planning, you can often avoid or defer taxes on those accounts.
Does your Will or Trust coordinate with all of your tax-deferred accounts? Does your plan minimize the future tax bill that your children may face?
At Edwards Group, our plans help coordinate all of your assets with your legal documents, and we work with you to minimize the future income tax.
Estate Tax – As a family’s wealth grows, estate tax also becomes a risk. The estate tax, often call the “death tax,” is a tax based on the size of your estate at death. Without specific planning, all assets that you control will be included in your taxable estate, including life insurance, joint ownership and beneficiary assets.
In recent years, the estate tax laws have been a moving target. Multiple changes have been made in the tax laws on both the state and federal level.
Is your plan up to date with the most recent estate tax laws? And does your plan include flexibility and systems to update your plan with future changes in the tax laws?
If you’re not sure about the answers to these above questions, or you know that your plan is not up to date, call us today at (217) 726-9200 to see what your best next step will be. You may also want to consider attending one of our workshops on the topic of Estate Tax.