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Help your heirs!

Discussion in 'Politics, Elections & Legislation' started by 635 G, Dec 22, 2009.

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  1. 635 G

    635 G Well-Known Member

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    Make sure not to die before Jan.1. There will be a one year waiver of in heritance tax.

    Really do some real estate planning before its too late.

    After2011,there will be a 55% federal estate tax for estates of one million.

    Phil Berkowitz
     
  2. Chango2

    Chango2 Active Member

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    Phil,

    Is it not best to create a family trust?

    I believe there is a young lady in So-Cal who is an excellent shooter and daughter of a couple that cut their teeth at Redlands. She'd know...oh, and both of her parents are top shooters.
     
  3. 635 G

    635 G Well-Known Member

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    A trust just avoids probate, it doesn't avoid taxes. Sometimes it pays to get alife policy in the amount of the potential tax liability. Best way is to transfer assets a little bit at a time while you still can. Non taxable gifts up to 13K a year are permissable. Tuition paid is tax deductable.The list goes on. There are 31/2 more years of people trying to grap your money. Keep it, you earned it.

    Phil Berkowitz
     
  4. TEXASZEPHYR

    TEXASZEPHYR Member

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    I beleive that proceeds from Life ins. pol. are not taxable. If that holds true then it might not be bad to buy a couple of single premium annuties with the beneficiary being the person to whom you wish the money to go to. Its true that that money may not earn any intrest to speak of, Single prem anuities pay less commission to the selling agent and the cost of the policy is kept to a minimum, and have heard that smetimes with a single prem anuity that a lot of health issues may be over looked. something that might be looked into for estate planning.

    Bob
     
  5. Bisi

    Bisi TS Member

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    The estate tax has killed more family businesses and farms than can be imagined.

    Even when you are dead the sobs tax you.
     
  6. 635 G

    635 G Well-Known Member

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    Protect what you worked for, save your business, save your farm. With good plans you can beat the system.

    Phil Berkowitz
     
  7. birdogs

    birdogs TS Member

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    This is not unlike that looney Congressman from Florida. Only this is, "The government needs your money so die quickly". Except that this is TRUE!

    Can any of you remember when this was a great country? Gee, that was so long ago.
     
  8. bigdogtx

    bigdogtx Well-Known Member

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    "Sometimes it pays to get alife policy in the amount of the potential tax liability"

    You have to be careful how the ownership is set up as just buying an insurance to pay the taxes, can increase your estate/death tax liability. Life insurance is INCOME tax free.

    "I beleive that proceeds from Life ins. pol. are not taxable. If that holds true then it might not be bad to buy a couple of single premium annuties with the beneficiary being the person to whom you wish the money to go to. Its true that that money may not earn any intrest to speak of, Single prem anuities pay less commission to the selling agent and the cost of the policy is kept to a minimum, and have heard that smetimes with a single prem anuity that a lot of health issues may be over looked. something that might be looked into for estate planning"

    Bob is correct about the taxable part, but it is only income tax-free and could be included in your estate if the ownership is not set up correctly. A single premium annuity, WILL BE included in your estate and any gains will be taxable to the beneficiary.

    You may be thinking of a single premium life insurance contract. While they may overlook some health issues, they also don't provide much in the way of a death benefit. They are also treated as an annuity for withdrawals; gains taxed as ordinary income.

    If you have a large estate there are some planning and gifting measures that you can do the can reduce or eliminate some or all of the taxes. You really need to utilize a professional in this field, or you could put yourself and your family in a worse position that you were trying to eliminate.
     
  9. Dave P

    Dave P TS Supporters TS Supporters

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    For what ever good it does keep telling your honorable(?)elected officials that the money used to purchase or give whatever is in the estate has already been taxed at least once
     
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