Boosting the tax on inherited wealth is a perennial goal of some politicians. And while the White House’s latest plan to boost the levy on estates faces a dim future in a GOP-controlled Congress, the concept will continue to pop up. There’s a lot wrong with this idea.
Trusts and Estates
You want to leave money to your heirs. When you do so, you don’t want to pay any more to Uncle Sam than necessary. Here’s what to know.
Families inherit money and sometimes make the right moves investing and spending. Inheritances can also ignite disruption, divorce and a host of bad behavior far from the hopes and plans of the benefactor. What happens when you leave what’s probably one of your biggest investments: your individual retirement plan?
First, a couple of other ways exist to protect the interests of your individual beneficiaries when leaving a fixed-dollar amount to charity from your estate.
Too often in the world of wealth management, estate planning is about splitting up the money after people are gone. I think this is too bad. For me, leaving a legacy of wisdom and love is more important than leaving money.
Your individual retirement account can constitute one of the richest assets you can leave to heirs. In some circumstances, your heirs benefit if you convert your traditional IRA to a Roth before your death. Whether to convert depends on many of your needs and circumstances.
Our first article looked at several new aspects of tax planning for large estates, including recent rules changes, portability and trusts, among other tools. Here are additional strategies that allow big estates to reduce taxes while gifting to heirs and charity.
When taking on a partnered client, it takes two. I always want to meet with both parts of the couple. Sometimes, I am often disappointed to find women don’t want to play an active role in money matters. Planning investment strategies and long-term finances takes active input from both wife and husband.
Nothing ignites family arguments like inheritance. If you plan to leave money to more than a few beneficiaries, for the sake of peace and your own emotional legacy, know how to divide the proceeds fairly.
Rules recently changed for estate planning, especially planning for large estates. If you drafted your estate plan before the new rules kicked in, examining your plan again might save you thousands of dollars.