You already know that your time on earth is limited.
However do you know that it is your responsibility to put a plan in place that provides your heirs (or family members) with a real chance for success after your transition?
How do you go about putting an effective plan in place that
addresses your estate planning and wills in a comprehensive manner?
Actually, it can be done!
If you have the
right approach and you are properly prepared and dedicated to achieve the
success that you know is in your future you can do so!
With the January 2013 update of taxes—estate taxes receive some clarification as the first $5 million in individual estates and $10 million for family estates are now exempted from the estate tax.
After that the rate will be 40%, up from 35%—and the exemption amounts are now indexed for inflation.
Most consumers won't have to deal with the complexities of estate taxes!
However you should still have an awareness of when it might affect you—as your goal should always be to increase your net worth!
All consumers should have a valid will created that addresses their wishes for the transfer of their assets after their transition.
sure that you are aware of all of the following:
• Trusts are
also an effective way of protecting your family and planning for the future.
Utilize highly effective Estate Planning Attorneys if you are at the point
where you are considering setting up a Trust as it can be fairly complex and
must be set up in the proper manner in order for it to be valid and carry out
your intended wishes.
Titling Your Property” is another way to pass on wealth and assets to your
family and loved ones. Be sure to give this area serious consideration, and
again be sure to use competent highly effective professionals.
Basis” is another area that you should be concerned about as some assets
will receive favorable step-up basis treatment and some won’t.
By doing so your heirs will have a blueprint of what needs to be done after your transition—as the adjustment period can be very difficult.
If an asset receives stepped-up basis treatment—that could mean lower taxes for your heirs in the future.
If, on the other hand an
asset does not receive stepped-up basis treatment, that could mean higher taxes
for your heirs.
· Use of
use insurance as a major tool to transfer wealth or increase your savings that you
can later pass on to your heirs.
You can use insurance to protect the assets that you have accumulated and pass on the assets and the insurance proceeds in a manner that you choose—while “you” are alive!
and your spouse can "each" gift up to $13,000 yearly without incurring any tax
consequences. Gifting is often used to
reduce an estate for Estate Planning purposes.
A gifting strategy can also be used in education planning. In either case competent legal advice should be obtained.
Also be sure to appropriately consider:
As a consumer you must put an estate plan and/or
will in place that addresses your intentions now—while you are of sound
You control the ability to direct the way that your assets and insurance proceeds are disbursed.
Be sure to use the control that you now have to address your concerns.
Whether it be for estate planning and wills or any other area
of your personal finances you must use the control that you now have to make sound decisions!
You don't have to let your State—or others determine where the things that you value most—end up at!
You can transfer your "net worth" in the manner that you choose—if you make the decision to do so—today!