EVERYTHING A BABY BOOMER SHOULD KNOW
Preliminary Thoughts On Planning For The Smaller Estate.
The first question in Estate Planning is whether or not your estate will be subject to estate taxes upon your death. This is determined by examining your age and annual income, your present assets with growth potential, and your expectation of inheritance, etc.
In the years 2006, ’07, and ’08, the estate tax begins at $2,000,000. This means that if your estate is valued at $2,000,000 or less, and you die in 2006, your estate will pay no Federal taxes. But if your estate is worth $2,500,000 and you die in 2006, it will be taxed on the overage of $500,000. If you die three years later, in 2009, this exemption amount changes to $3,500,000, and your estate would be taxed on any amount over $3,500,000 at 45%. (See How the Federal Tax Exemption Works.)
Assuming your estate is under $2,000,000 in 2006 and thus exempt from taxes, it may be possible to plan its administration using either a Will or a Living Trust. Planning for this smaller estate is relatively simple and probate cost and attorney fees can be easily avoided when a client’s desires are straight forward.
There's much more...
An Insider's Guide to Estate Planning
TO ESTATE PLANNING:
KNOW WHAT YOU’RE TALKING ABOUT!
Why pay money so an attorney can try and explain the difference between a Bypass Trust and a QTIP Trust, when this book will answer that question long before you have to pay for a consultation?
This guidebook helps you map out your estate plan so it goes exactly where you want it to go. It explains the tools you need to give away or preserve your money, homes, businesses, heirlooms, cars, boats, jewelry, tools, art, memorabilia, and every other artifact of life you have accumulated over the last 45 to 65 baby booming years.
Mark S. Cornwall, Esq.
210 E. Figueroa Street
Santa Barbara, CA 93101