4 WAYS TO LEAVE MORE BEHIND UNDERSTANDING ESTATE TAX LAWS, REGULATIONS, AND EXEMPTIONS ROSS BRUNSON, CONTRIBUTING WRITER
Now while Sharee and I tend to schedule a lot of 3 Dimensional Wealth activities during our Family Retreats With a Purpose, every family has its own dynamic. Your family might be a little more relaxed in how you vacation, so maybe just one values-based activity a day might work for you. To help you plan your getaway your way, I’ve developed a Family Retreat With a Purpose Planner. (Scan the QR code on p. 1 to download the planner.)
When we think about what to pass down to our family, we want to maximize what we leave behind, which also means minimizing the taxes that could diminish what they receive. While estate tax laws and regulations can be complex and intimidating, with a little understanding and planning, you can ensure that your loved ones are not burdened with excessive tax obligations after your passing. Here are a few things to consider.
are distributed according to your wishes.
Gifting: There are annual gift tax exclusions that allow you to gift a certain amount of money or assets each year tax-free, which can reduce the overall size of your estate. Charitable Giving: Donating assets to charitable organizations not only benefits the causes you care about, but can also reduce your taxable estate. Establishing an IUL LASER Fund: By putting a significant amount of your wealth into an IUL LASER Fund, you can not only benefit from tax-free growth and access to tax-free income during your lifetime, but your death benefit also passes along income-tax-free to your heirs. Keep in mind that the death benefit is included in your estate value; thus it can be subject to estate taxes if your estate value exceeds the estate tax exclusion amount. However, if you have a high estate value, you can safeguard your death benefit from estate taxes by utilizing either an Irrevocable Life Insurance Trust or a Spousal Lifetime Access Trust. While these special trusts can protect your death benefit from estate taxes, they can also put constraints on how you access money in your policy during your lifetime, so be sure to fully understand your options before taking action. By staying informed on estate tax laws and regulations and working with a qualified estate planning attorney and/or financial specialist, you can ensure that your estate is preserved for future generations.
However you do it, just be sure to make the most of your next trip by carving out time to strengthen your family’s Foundational, Intellectual, and Financial Dimensions.
–Doug Andrew
DEFINING ESTATE TAXES Estate taxes, also known as
inheritance taxes, are imposed on the transfer of a person’s estate after their death. The federal government imposes estate taxes on estates worth more than a certain threshold, which is currently $13.6 million for a single person or $27.2 million for a married couple (these thresholds are always subject to change). State governments also have their own estate tax laws, with threshold amounts and rates varying by state. UNDERSTANDING EXEMPTIONS The estate tax exemption specifies the amount of money that can be passed on to heirs tax-free. For example, if the federal estate tax exemption is currently $13.6 million and your estate is worth $10 million, your heirs would not owe any federal estate taxes. MINIMIZING TAX OBLIGATIONS The good news is there are a few ways to minimize estate tax obligations: Creating a Trust: A well-designed trust allows you to transfer assets to beneficiaries while minimizing estate taxes. Trusts can also provide protection from creditors and ensure that assets
FUN FOOD IDEAS
You can’t go wrong with this classic Andrew family crowd-pleaser! CHICKEN AND BROCCOLI CASSEROLE
INGREDIENTS
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6 chicken breasts
1/2 cup mayonnaise
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1 medium head broccoli 2 cans cheddar cheese soup
1 tbsp fresh lemon juice
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2 cups bread crumbs
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1 cube butter, melted
Sauté and shred the chicken. Lightly steam the broccoli for about 5 minutes (should still be crisp). Spread the broccoli on the bottom of a 9”x13” pan and top with the shredded chicken. Mix soup, mayo, and lemon juice and spread over the chicken and broccoli. Mix the melted butter and bread crumbs, then spread on top of the casserole. Bake at 350 degrees F for 30 to 45 minutes until golden brown. DIRECTIONS
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