Estate Planning for the Wealthy
Estate Planning for the Wealthy
When was the last time you looked at your estate plan? If you can’t answer that question, either because it’s been so long that you can’t remember or because you still don’t have an estate plan in place, then you have some work to do. With the New Year almost here, now is a great time to take a closer look at your estate plan, or to start one, if you haven’t already. Estate planning is important for everyone, especially if you have a lot of wealth and you want to control what happens to it after you pass on. To that end, let’s take a look at some of the important tips to keep in mind for your estate plan.
Estate Tax Could Be Eliminated
Before we get started, there is one important factor to be aware of regarding estate planning and taxes. Now that Donald Trump has been elected president, there could be some changes coming to the estate tax laws: namely, he wants to eliminate the estate tax completely. Currently, any assets that exceed $5.45 million are taxed at a 40 percent rate for one’s beneficiaries. That money would be tax-free if Trump’s proposal is passed.
Remember Your Will
One of the first steps you should take is to draw up a will. That seems like a no- brainer, but the fact is nearly 70 percent of all adults in America as of November of last year did not have a will. Without a will, your estate will end up being divided in probate court and likely won’t end up where you intended.
What About Beneficiaries?
Of course, you get to choose who inherits your money, so make sure you choose wisely and specify which assets go to whom. It’s always a good idea to reevaluate your plan whenever a major life change occurs, such as a new child, a divorce or marriage or a death in the family.
Trust the Trust
Setting up a trust is always a good idea if you have a large estate. Having a trust, with a trustee, allows you to determine how your assets are used and protect them from being abused or misused after you’re gone. There are several types of trusts, but permanent or irrevocable trusts usually provide the most tax benefits. However, when you place assets in such a trust they become the property of the trust, which means they are not subject to estate taxes.
Consider a Roth IRA
Another smart move for many people is to convert a traditional IRA to a Roth IRA. The money from a traditional IRA is taxable if it’s transferred to anyone other than your spouse. However, you can avoid this by slowly converting traditional IRA accounts to Roth IRA accounts.
Give it Away Before You’re Gone
One of the best ways to protect your money and other assets is to give it away before you pass away. You can give away up to $14,000 per person in gifts every year. Those gifts will decrease the value of your estate and they are tax-free for the recipients. You can also donate your assets to charitable causes, which also provides a nice tax break. For more estate planning ideas to protect your wealth contact GROCO for help.
What Core Beliefs Do Great Bosses Share?
What Core Beliefs Do Great Bosses Share? What makes a great boss, great? For starters, great bosses earn their employees trust. People want to follow great bosses because they believe in what they are doing. Great bosses also believe in those they lead. They help their people accomplish more and achieve greater successes. But what…
Is Paying Off Your Mortgage Still a Good Idea?
Is Paying Off Your Mortgage Still a Good Idea? For decades, the most common and well-accepted belief is that paying down your mortgage is a good idea. After all, the quicker you pay it off, the less money you throw away in interest payments. So it stands to reason that getting it paid off faster…
Don’t Get Bit By Hidden Taxes in Retirement
Don’t Get Bit By Hidden Taxes in Retirement Just about everyone hates taxes. They’re complicated and they often seem too high for moat taxpayers. Keeping track of the constantly changing laws and regulations can be unbearable for many, as well. So what about when you retire? Things will get a lot easier when you quit…
Best 2018 Work From Home Jobs
Best 2018 Work From Home Jobs Do you have extra free time you wish you could turn into extra money? As times are changing, so are the ways to earn money! If you area stay at home mom or dad, between jobs, retired, or could just use a little extra coin, work-at-home opportunities are growing…