According to one financial expert, the estate plans of business owners should have three distinct objectives. These include succession plans that let businesses transfer to new owners and help their original owners retain control via stock. Estate master plans should also incorporate retirement arrangements that let people and their spouses keep up their preferred lifestyles for as long as necessary and lifetime plans that transfer wealth while its owners are alive without sacrificing their control over the property.
In one example, a man who died left behind a $10.3 million C corporation overseen by one of his grown children….
A change in procedures by the Internal Revenue Service could cause delays for beneficiaries of estate assets in Florida. Previously, the IRS would automatically send a closing letter to an estate executor after they had filed Form 706. Once the closing letter was received, the estate executor could begin dispersing the remainder of the estate’s assets. Now, executors must make a special request for a closing letter, and they have to wait four months after filing Form 706 to make their request….
Have you considered what will happen to the wealth that you have accumulated after you are gone? How much of it will go to your children or loved family members? Will these individuals be capable of sustaining and further growing the Florida business that you have strived to create? These are all questions that one must consider when deciding how to preserve wealth. If you have a lot of financial assets, it is only natural to want to spread those funds amongst your children, but it must be done efficiently….
A former president once said that government is like a baby: a voracious appetite at one end, and no control at the other. That voracious appetite takes the form of taxes, and if you have lived long enough and have made enough money to be able to contemplate estate tax planning, gift tax planning or both, then you should already be aware of just how hungry the government can be for your money.
The government’s quest for your hard earned money does not cease merely because you pass on….
Many Florida residents who are planning for the distribution of their assets when then die may be concerned about future tax liabilities, but the federal estate tax exemption is actually fairly high. For those who still do not qualify for the exemption, there are other measures that can be taken to reduce or eliminate the tax.
The federal exemption for 2015 is $5,430,000. This number takes all assets into account including property and cash. While this exemption includes taxable gifts that an individual gives while alive along with the estate that is left to heirs after the individual’s death, there are ways around having gifts included in the total….
When property is gratuitously transferred from one individual to another, it is considered a gift in the eyes of the government. This gift may be subject to the gift tax depending on how much the gift is worth and whether an individual has any of his or her gift tax exemption available. Property that is transferred from one person to another after an individual passes on may be subject to estate tax.
The gift and estate tax exemption for 2015 is $5.43 million and is indexed for inflation….
Every year, the Internal Revenue Service provides updates to the amount individuals can set aside for their future or leave to their heirs tax-free. These guidelines allow for individuals to maximize ways to provide for their families now and after they are gone.
The 2015 federal estate tax exemption is $5.43 million per person. The 2015 annual gift exclusion is $14,000 per individual. These limits mean that someone can leave their heirs an estate worth up to $5.43 million or provide a gift, up to $14,000, to someone without paying federal taxes….
At least once a year, it may a good idea to review estate planning rules and laws as they may change. For instance, the estate tax exemption has risen each year since 2011 with inflation. In 2015, the estate exemption is $5.43 million, which is a $90,000 raise since 2014. However, those who have made gifts in excess of the annual gift limit may have eaten into some or all of that exemption.
In 2015, individuals can give gifts of up to $14,000 per person without having to pay taxes or report the gift to the IRS….
Florida residents may benefit from learning more about the general duties of estate administrators as described by the IRS. The estate administrator can be described as the legal representative appointed to act on the decedent’s behalf. Often times, this person is referred to as the executor and may be a lawyer, family member or surviving spouse. In order to manage the decedent’s taxes and other important documents, the estate administrator must be in possession of the Letters Testamentary, which provides the authorization to act accordingly….
Although most people have heard of the gift tax, the name is somewhat misleading. In most cases, individuals who give large gifts will never pay taxes for doing so. Those who give more than $14,000 to an individual in 2014 will have to tell the IRS about that gift on Form 709. It is important to understand that the $14,000 limit applies to each person who receives a gift.
The $14,000 limit applies to both property and money and is doubled for a married couple giving a joint gift….