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state income tax on your Social Security benefits, as well. You need to take taxes into account. With taxable accounts, tax-deferred accounts, and tax-free accounts, you’ll have some flexibility in Retirees Get Some Great Tax Breaks. Some states have special breaks for retirees on sales taxes and property taxes.

But if you’re currently in a low tax bracket, you may want to pay taxes now and save funds in a Roth, which you can withdraw tax-free later. Contributions are from after-tax dollars and can be withdrawn tax-free—including earnings—in retirement Withdrawals are taxed when you extract the money. Their lower salaries mean they wouldn’t get much of a tax deduction from a traditional IRA.

This allows the transfer of an unrestricted amount of assets to a spouse without estate tax at any time Ali’s primary residence was in Arizona, one of the states that doesn’t have a state estate tax, so his estate would only be subject to the federal 40% tax rate on estate values exceeding the $5.45 million Kentucky has an inheritance tax. His heirs will see a maximum 16% tax rate on inherited assets. Some parties are exempt from paying the inheritance tax.

Analyze your tax refund as a hierarchy of needs. Use your tax refund to cover any shortcomings. Consider the return on investment (ROI). One way to be assured that you make your tax refund count for the next year is to look ahead and consider After you get your tax refund, talk with your financial planning team to establish priorities. Remember, your tax refund is your money—money for which you’ve worked hard.

In addition, there can be problems with financial and tax planning and poor investing. of family assets and encouraging sound investing; talking about methods of transfer—including direct gifts

Someone should be able to locate your tax returns, brokerage statement, and beneficiary information. Planning to make difficult times easier on the ones you love may be the best gift ever.

You also need to talk about which one of you will claim tax-deductible expenses, such as mortgage interest and property taxes. Also, if you have significant net worth which would make you liable for federal estate tax, you should AssetProtection #EstatePlanningLawyer #NoNup #DurablePowerofAttorney #WillCohabitation #PowerofAttorney #Wills #TaxPlanning

professionally created retirement plan usually includes a review of your estate plan and portfolio investments, tax Tax Planning. Spending extra dollars using an experienced, proactive professional can save you thousands in taxes. Business Journal (May 16, 2016) “10 basic steps for retirement planning” #AssetProtection #LifeInsurance #TaxPlanning

Charitable Gifts While many people prioritize charitable giving each year, many forget to plan for charitable gifts as part of their estate plan. Charitable Gift Annuity: You can purchase a charitable gift annuity. The annuity pays a fixed percentage of the gift each year, with the balance paid upon your death.

With good tax breaks for annual gifts, a few contributors a year can start building an impressive fund

Similarly, gifts and sales that are less than fair market value within five years of applying for Medicaid But before a transfer is made, there are also income tax considerations which may significantly impact

Tax Planning: Don’t forget about the IRS. Talk with an experienced estate planning attorney about ways to legally lower your tax liability. CharitableContributions #AssetProtection #EstatePlanningLawyer #IRAs #401k #HoustonWills #PowerofAttorney #Insurance #TaxPlanning