At Titan Insurance & Financial Solutions, Inc. you will work with a team of specialists who will help you prepare and execute an estate plan that is right for you and your beneficiaries.
One overlooked aspect of estate planning, other than avoiding taxes, is the fact that Insurance documents and other contracts may supersede the wishes you lay out in your will. Making sure all your beneficiary forms are in order, that you are transferring your assets in the most tax efficient manner, and that you have a continuity plan in place to ensure that your loved ones are taken care of while your estate is making its way through the courts, are all vital pieces of your plan. Give you and your loved ones the peace of mind that comes with knowing that you have a sound financial plan that takes care of them when the time comes.
With the estate tax threshold set at millions of dollars per person, it may seem that estate planning is only a concern for the wealthiest of the wealthy. While most estates won’t be subject to this current estate tax rate, individuals still need to think about the impact of taxation on their assets issued to beneficiaries. This is because received assets will generally be subject to ordinary income tax, which can whittle significant amounts away from the accumulated value of an estate.
Certainly different asset types will be taxed differently, but someone’s life wealth can be reduced—in some cases by nearly half—through ordinary income taxes. This gets more complicated when the asset is not monetary, but rather physical, such as property, land, or houses. For many individuals that work hard their entire lives to leave wealth to their heirs, this prospect can be unsettling.
Thankfully, there are many strategies that can minimize the tax burden heirs may face. This can involve things like annuities, trusts, and life insurance policies, structured to ensure that beneficiaries receive the maximum possible. To properly establish an estate plan that works in concert with your specific retirement plan, assets, and legacy goals, you should seek out as a financial advisor that provides an expert hand.