Avoiding Estate Tax
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by: ryshep13@gmail.com
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Death taxes and inheritance taxes are often referred to as "estate taxes." These are taxes levied by government agencies. They have nothing to do with probate.If you don't have a big estate, you don't have to worry about paying estate tax.Even larger estates usually don't have to pay estate taxes, because there are a number of legal tools that can help eliminate any estate taxes actually payable.Estate taxes are often called voluntary taxes, because if you plan for them you don't have to pay them.The rich don't lose a dime when dad dies, so why don't you do your estate planning and avoid all of the estate taxes?nEvery dime of a deceased person's estate is actually subject to the estate tax and a tax is levied.Most families don't have to actually pay any estate taxes, because the IRS gives them a "credit" which can be used to pay a set amount of the estate tax charged.The amount of property an estate can pass, without having an estate tax actually paid, changes almost annually.It is actually the credit amount that changes and not the estate tax rates and brackets.nnThe IRS has brought the estate tax and gift tax together and "unified" them. The credit we have been talking about is called the "unified credit," because it can be used to offset either a gift tax or an estate tax liability.The IRS unified the gift tax and estate tax, thus the unified credit can be used to offset either a gift tax or an estate tax liability, or it could be used to offset a combination of the two taxes.Because the unified credit changes often, you will have to look up the unified credit for the year you are interested in. The amount of property that generates an estate tax equivalent to the amount of unified credit available to offset the estate tax is called the "exemption equivalent." So when somebody says you can pass $2 million without an estate tax, they are really saying that the unified credit amount allowed that year will offset the tax on the individual's first $2 million of property subject to a gift tax or an estate tax.nA person's estate includes the house, all other real estate, personal property, stocks, bonds, all retirement accounts, IRAs, life insurance face value, the value of their little business, and every other asset you can think of. Yes, the life insurance is subject to estate taxes in almost all cases. With inflation ballooning estate values, many families are surprised to find out that there will actually be some estate tax paid when mom or dad die. On the first dollar above the exemption equivalent, the estate tax is about 50%, and the family will actually pay the tax.If the estate is only a half a million dollars over the exemption equivalent, there will be a payable estate tax of about $250,000.It may cost $10,000 at the attorney's office, but if you can deliver an additional quarter of a million dollars to your family, it is money well spent.nUsing Lee R. Phillips' new book, Guaranteed Millionaire, and his FREE DVD, Using the Law to Make Money and Protect Your Assets, you will know how to move your live insurance out of the estate tax trap.Using the book and DVD together, a couple can learn how to pass twice as much property to their family without having any estate tax problem.If you don't eliminate your estate tax problems by removing your life insurance from your estate and getting twice as much property out to the family without an estate tax, there are a number of other legal tools an attorney can use to eliminate estate taxes.Corporations, LLCs, Family Limited Partnerships, and other legal tools are detailed in the FREE DVD and book, so you can get the asset protection and estate tax relief you want.Order Guaranteed Millionaire and the FREE DVD, Using the Law to Make Money and Protect Your Assets, now.
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For more information on how to avoid estate tax please visit our website above and get a free 90 minute informational DVD.n
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