Tax Planning

For most people, income taxes and capital gains are a more important planning considerations than transfer taxes. However, under certain circumstances there are three types transfer taxes that could be imposed: the gift tax, the estate tax, and the generation skipping transfer tax. If you transfer assets that exceed the exemption amounts, either during life or at death, those assets in excess of the exemption will be taxed at a maximum rate of 40%. If it is conceivable that your gross estate will exceed the exemption amount, you must consider transfer taxes when planning your estate. Otherwise, your primary tax planning goal will likely be to ensure that property receives a basis adjustment at your death. A few words in a Will or Trust can have a drastic effect. The implementation of tax planning often requires you or your executor or trustee to make certain tax elections, obtain appraisals, and file tax returns. We do not file tax returns. Therefore, we always recommend that you include your tax professional in any estate planning or administration that has significant tax implications.