If you are experiencing some types of symptoms that indicate a health challenge you are not going to be well served by making your own diagnosis. You could have some layman’s hypothesis about what you may have, and you may get advice from people that you know.
However, if you act without professional guidance you could well make a mistake that makes matters worse or create a problem that didn’t previously exist.
The above is something that you can apply to financial planning as well. If you get ideas in your head with regard to how you should proceed without any expert advice from a licensed professional you may wind up placing yourself and/or your family in a difficult position at some point in time.
For example, let’s say that you recognize that you have more than ample resources to last you for the rest of your life. For the purposes of this hypothetical example you decide to give gifts to your loved ones and send out a bunch of large checks.
This would seem on the surface to be a totally positive act of generosity engaged in for the well-being of those that you love. How could there be any negatives involved?
Many would say that there should be no penalties imposed when you want to give gifts to your loved ones, but the tax man has a different idea. There is a gift tax in place that carries the same rate as the estate tax; right now that rate is 35%, but it is scheduled to rise to 55% next year (no, that is not a typographical error).
The point is that you would do well to talk things over with a professional before you engage in actions that could have serious tax consequences. If you would like to do just that, simply take a moment to arrange for an informative, personalized consultation with a good South Carolina estate planning lawyer.
John Kuhn, Estate Planning Attorney
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