and Gift Planning
planning can save thousands of dollars!
take it with you, but failing to plan for your estate can mean that
the government, rather than your heirs, may get the major portion of
your hard-earned money.
coming years, the Tax Relief Act of 2001 gradually reduces estate
and gift tax rates, and the exemption amount increases. The estate tax
will be repealed in 2010, but the gift tax will be retained. Ironically,
the estate tax will be reinstated in 2011 to pre-2001 Tax Act
rules unless Congress acts to extend the 2001 law. In the midst of these
phase-in and phase-out provisions, a little planning can save thousands
be surprised what your estate is worth. Add up the value of all your
assets. Don't forget life insurance which may fall into your estate.
If your total value exceeds the exemption amount, you should look into
what a few simple planning techniques can save your family at estate
addition, there are some very effective estate planning ideas that can
also cut your current income tax bill.
here to use an estate planning calculator to help you determine
what your estate is worth.
Current tax law allows you to give away $12,000 per year per recipient.
(This amount is adjusted annually for inflation.) Your spouse
may join in the gift even if he or she is not an owner in the
transferred asset. This means that you could transfer up to $24,000
per year to each of your heirs. To double the annual exclusion
yet again, you may want to include spouses of your children. The
person receiving the gift does not need to be related to you.
These annual gifts do not reduce your once-in-a-lifetime estate
If you have property which is not needed for your retirement, maybe
it is a candidate for transferring during your lifetime. If it is
a large income-producer, the future income will be taxed to the
new owner and not to you, plus the property will be out of your
You can generally make unlimited transfers to your spouse either
during your lifetime or through your estate. There are generally
no taxes on spousal transfers, regardless of size. But leaving everything
to your spouse may not be a good idea, since doing so fails to utilize
the lifetime exclusion amount in the estate of the first spouse
to die. Planning will allow you to use the exclusion in both estates,
and you'll be able to transfer twice as much to your heirs free
of estate tax.
With proper planning, certain life insurance proceeds can be kept
out of your estate.
with your estate planning, contact us.
Gratton & Beaumont, LLC
1260 S. Federal Highway, Suite 101
Boynton Beach, FL 33435
Fax: (561) 737-7924