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Estate Tax Planning

Saturday, July 31, 2010 | Posted in Promo

Estate Tax Planning

Estate Tax Planning

What is an estate tax? Estate tax is a tax on your estate assessed after your death. When you die, your assets and any properties you leave behind are part of your estate. The IRS taxes your estate before the assets can even be transferred to your heirs and loved ones. The tax bill will depend on when you dies and the size of your estate. In 2009 the exclusion amount is $3.5 million, in 2010 no estate taxes will be due, in 2011 estate taxes will be due on any estate worth more than $1 million. The tax rate ranges from 41% on estates over $1 million to as high as 60% on estates between $10 million to $17,184,000, estates over $17,184,000 would be taxed at 55%. That’s exactly why you need estate tax planning!

What are the goals of estate tax planning? There are 3 main reasons to seek estate planning:

1. To lower the value if your gross estate,

2. To maintain the state’s eligibility for as many credits as available,

3. To maximize the deductions your estate will be eligible for.

Consulting a competent estate tax planner can make sure that the strategies you use will actually work when your taxes are assessed to your estate.

Life insurance planning. Life insurance should be a vital and integral part of your estate tax planning. Many families with closely held businesses utilize life insurance proceeds to pay any gift or estate taxes due to the retransfer of the business so they won’t be forced to sell the business when one of the owners die.

Why is life insurance so important? The first thing your financial advisor will usually work on is to review your life insurance policies. This is so critical for  a number of reasons.

Estate Liquidity: all estates, regardless of their size, will need cash to pay any taxes, administrative expenses and any debt left by the decedent. Cash will also be much needed to keep the family business operating during probate. Life insurance quickly fills any cash gap!

Replacement of income: life insurance proceeds can fund a much needed income stream for your family after your death.

Wealth accumulation: life insurance can significantly increase your family’s wealth after your death.

Debt retirement: major debts such as mortgages and other debts can be retired using life insurance proceed so the family will not be forced to move out of their home or make unwise decisions as a result of your death.

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Estate Planning, Estate Planning Attorney, California estate planning lawyer, Estate planning and trusts, estate planning retirement VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

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