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avoid probate (the legal process of settling an estate when somebody passes away) and plan for estate taxes This explains why some trusts can help minimize or avoid estate taxes. LLCs also are not taxed at the corporate level. Instead, LLC owners pay taxes on business profits on their personal income tax return. Those with large estates can use a family LLC structure to minimize gift and estate taxes.

These changes can be outside your control—like income tax and estate laws that are amended, repealed Major transactions: This includes making substantial gifts and borrowing or lending money—even purchasing

When you make gifts, make sure that everyone knows about it so that the person receiving the gift is If the person you are gifting the item to is agreeable, you can keep these items around. Be aware that for highly appreciated property, for tax reasons, it may be better not to make gifts during So, check with your experienced estate planning attorney or tax accountant first.  For the tax reasons referenced above and to guide you in deciding who should get what item, it can be

Plus, it can create a huge tax bill, meaning less for your spouse and family. silly money mistakes retirees can make” #AssetProtection #EstatePlanningLawyer #RetirementPlanning #TaxPlanning

, intellectual property, digital assets, and cryptocurrency often necessitate specialized legal and tax This lifts a huge burden on family members already grieving their loss. Gifting assets while living also removes them from the future probate estate but could cause tax implications

Certain conditions on gifts. You may be tempted to make gifts conditional on the recipient’s behavior or actions. If you would like your gifts to be conditional, a trust may be the better tool to use.

This can leave them with a chosen amount of tax-free cash. EstatePlanningLawyer #Inheritance #BusinessSuccession #BeneficiaryDesignations #Wills #LifeInsurance #TaxPlanning

Business Entity Tax Implications The type of business entity you choose has important tax implications taxes). and self-employment tax, and the spouse who is an employee pays income taxes according to their salary Failure to pay estimated taxes can result in penalties. has been an election to be taxed as an S or C corporation.

A Roth IRA is funded with after-tax dollars, and that money grows tax-free. Plus, qualified distributions after age 59½ are also tax-free. With a traditional IRA, the investment is funded with pre-tax dollars. Typically, you receive an immediate tax deduction, and the money grows tax-deferred; however, distributions Uncle Sam says that you’ll owe ordinary income tax on any amount you convert.

The Business Journal reports in “Taxes done? things to think about in terms of how you’re managing your wealth for the long term before you blot taxes Rather than selective amnesia with tax season, try some financial awareness throughout the year because tax season provides a great opportunity for people to think more holistically about wealth management Reference: The Business Journal (April 18, 2016) “Taxes done?

Gifting Strategies Gifting strategies involve transferring assets to family members or loved ones to A Medicaid planning lawyer can provide guidance on the best gifting strategies for your unique situation

Reference: Billboard (May 27, 2016) “Whitney Houston Estate Challenges $11 Million Tax Bill” #estateplanning #IRS #TaxPlanning