The federal estate tax can cut into your family's financial future considerably. The maximum rate of the tax has gone up to 40% this year, and the exclusion sits at $5.25 million. What this means is that the portion of your estate that exceeds $5.25 million is potentially taxable. We say "potentially" because there are steps that you can take to decrease your estate tax liability. … [Read more...] about Ease Estate Tax Burden With ILIT
A charitable remainder trust (CRT) in the form of an annuity is an effective means to provide a significant gift to a charitable cause that you support while at the same time providing an annuity income for life for yourself. Potential Tax A CRT potentially reduces taxes paid during your lifetime or eventually on your estate. This type of trust is especially useful for highly appreciated assets such as stocks, mutual funds or real estate holdings that have risen in value over a long … [Read more...] about Estate Benefits of a Charitable Remainder Trust
If you've done any research or reading on the topic of estate planning, you've probably heard the term "life insurance trust" or ILIT for short. Wondering what exactly this type of trust does? Life insurance proceeds are income tax-free, but not estate tax-free. They are includible in your taxable estate for determining federal estate tax. The primary benefit of a life insurance trust is its ability to remove the insurance death benefit from your taxable estate. This means you minimize estate … [Read more...] about What is a Life Insurance Trust?