The federal estate tax applies to asset transfers when someone passes away and leaves assets to beneficiaries. The tax rate starts at an attention-getting 40 percent. That’s the bad news. The good news is that an exclusion allows you to transfer an amount tax-free. The portion of an estate that exceeds the exclusion is what would be subject to taxation. There are annual estate tax adjustments to account for inflation, and we are going to share the 2021 number in this post. But before we … [Read more...] about 2021 Estate Tax Exclusion Update
Gift Tax
How Are Inheritances Taxed?
People often have questions about the way that inheritances are taxed, and many of them assume that you would have to report a bequest when you file your income taxes. In fact, even though it may be a bit surprising, this is not the case at all. Inheritances are not considered to be taxable income by the Internal Revenue Service or state tax agencies. This includes direct inheritances and insurance policy death benefit payouts, at least for now. Another piece of good news pertains to the … [Read more...] about How Are Inheritances Taxed?
Planning for Lottery Winners, Part 1 of 2
A lucky winner recently won $320 million in the lottery. This article looks at an example of a prior winner’s mistakes. The next article in the series will examine strategies for lottery winners. Planning for Lottery Winners, Part 1 of 2 … [Read more...] about Planning for Lottery Winners, Part 1 of 2
Treasury Releases New Inflation Adjustment
The new tax law doubled the estate tax exclusion through 2025. This article looks at the exact amount of the new exclusion (it’s not what you thought) and how it might be useful. The article also examines why there’s no reason not to take advantage of the newly-doubled exclusion. Treasury Releases New Inflation Adjustment … [Read more...] about Treasury Releases New Inflation Adjustment
What Steps Can I Take to Preserve My Legacy?
Your legacy is something that persists even after you pass away. People who are in a position to cast a long shadow as it were should consider legacy planning. The legacy that you leave behind does not have to conclude without direction. You can carefully shape your own legacy if you take the correct steps in advance. … [Read more...] about What Steps Can I Take to Preserve My Legacy?
Beyond Estate Planning Documents: Learn About Passing On Your Legacy
Watch this video to discover THE most important inheritance you can pass on to your children and your family's future generations, and how to avoid becoming an empty name on your family tree! … [Read more...] about Beyond Estate Planning Documents: Learn About Passing On Your Legacy
The Doors’ Co-Founder, Manzarek, Leaves a Creative Legacy
The Doors are one of the most iconic classic rock bands of all time, and the recently deceased Ray Manzarek was one of the founders. As the story goes he met Jim Morrison back in 1965 and Morrison told the young keyboardist that he had been writing lyrics. They decided to collaborate, and the rest, as they say, is history. … [Read more...] about The Doors’ Co-Founder, Manzarek, Leaves a Creative Legacy
Do You Have Philanthropic Urges?
Philanthropy can be a meaningful part of your legacy, and many people feel strongly about giving something back. Exactly how you should structure your efforts is something you should discuss in detail with a licensed and experienced estate planning attorney. Clearly there are personal rewards that come back to you on a tangible level when you make the decision to give something back. But at the same time you may be able to maximize your giving by taking advantage of certain tax benefits that … [Read more...] about Do You Have Philanthropic Urges?
Consider Working on a Blog During Retirement
A lot of people say half jokingly that they should write a book given the experiences that they have had throughout their lives. When you are engaging in your retirement planning efforts you may want to consider actually doing something along those lines. The stories that you have to share could be a legacy of learning that your family, friends, and perhaps others could benefit from reading. However, there is no guarantee that you can find a publisher if you were to author a traditional … [Read more...] about Consider Working on a Blog During Retirement
Your Positive Influence Can Live On
When you are contemplating the impact that you have had on the world during your life, you may have some profound revelations. It is likely that you can say with all honesty that you made the world a better place in many ways. This can get into your head when you are planning your estate, and you may want to take action to see your influence continue, long after you pass away. … [Read more...] about Your Positive Influence Can Live On
