If you are fortunate enough to have amassed a moderate to large estate you should be aware of the need to protect that estate from federal gift and federal and Illinois estate tax. The best way to do that is to start planning early and update that estate plan on a regular basis. Failing to have a comprehensive estate plan in place can result in the loss of a significant percentage of the value of your estate after your death. As you will no longer be here, your loved ones will be the ones who … [Read more...] about Understanding Federal Gift and Estate Tax
For taxpayer’s with a moderate to large estate in the Quad Cities, tax avoidance is a common estate planning objective. Considering the fact that the gift and estate tax is set at 40 percent, this seems a wise goal for anyone planning an estate. One other tax that a taxpayer should understand when planning his or her estate is the generation skipping tax. The generation skipping tax is a rather complicated tax in what is universally considered to be a complicated tax system. Therefore, it is … [Read more...] about What Is the Generation Skipping Tax in the Quad Cities?
For a taxpayer who is fortunate enough to have amassed a moderate to large estate one goal of estate planning should be to limit the estates exposure to gift and estate taxes. In the state of Illinois, there are numerous strategies that can be incorporated into a comprehensive estate plan to achieve this goal. One of those strategies is to utilize the annual gift tax exclusion. When you die all of your estate assets, meaning anything owned by you at the time of death, must be inventoried and … [Read more...] about What Is the Annual Gift Tax Exclusion in Illinois?
Although the primary goal of most estate plans is to determine who will receive which estate assets upon the death of the plan’s creator, most estate plans also include a variety of other goals and objectives as well. One common secondary goal is tax avoidance. If you are creating your estate plan, and are currently married or plan to marry in the near future, you need to understand how the Illinois marital deduction fits into an estate plan. In Illinois, your estate is potentially subject to … [Read more...] about What Is the Illinois Marital Deduction?
Although the primary goal of any estate plan is to determine who will receive your estate assets upon your death, a common secondary goal is the mitigation of exposure to estate taxes. Understanding the basics of the federal gift and estate taxes will likely provide you with a strong incentive to create or update your estate plan. At the time of your death, all of your estate assets must be located and valued. The cumulative value of all your estate assets is then potentially subject to federal … [Read more...] about Federal Gift and Estate Taxes – How Much Can I Transfer?
If you are a regular reader of our blog, it might seem like we have told you 1000 times that the estate tax exemption limit is scheduled to be reduced at the beginning of next year. We have not written about it quite that much, but we have spent a lot of time talking about it. Forgive us, but we need to do so again because this is an important issue for farmers, business owners, and middle class families of all sorts. Unfortunately, it is looking like there will not be a fix for the impending … [Read more...] about The Estate Tax Issue Will Not Be Resolved
If you have a large portfolio, now might be the best time for you to speak to an Estate Planning attorney about how you can leave assets to your heirs. Different estates should use different options. However, an expected change in the law means that one option will become a lot worse at the end of 2012. Currently, you can take advantage of the estate tax and inheritance tax exemptions to transfer up to $10 million to your heirs tax free. Some of that needs to be transferred this year. At the … [Read more...] about Tax Laws Will Change in 2013: Make Your Estate Plan Before They Do