There is an estate tax on the federal level that is poised to consume a significant portion of your legacy if you do not take preventative actions, but there are some exemptions.
This year the first $5.12 million that you pass along is exempt. However, next year this figure goes down to $1 million.
A common tax exemption question arises about bequests that you leave to your spouse. If you bequeath resources to your husband or wife will these assets be subject to the federal estate tax?
The answer to this question is no, but this fact may be less profound than you may think at first. You can leave your resources to your spouse, but eventually he or she is going to have to pass them along as well.
At that time the estate tax would become a factor as your spouse would presumably be passing along the family legacy to your children and grandchildren.
The intelligent course of action is to discuss comprehensive tax efficiency strategies with a good South Carolina estate planning lawyer rather than looking for quick fixes as it were. There are steps that can be taken to make sure that your wishes are carried out to the letter while your wealth is being preserved for succeeding generations.
If you are not fully prepared for the future in light of the estate tax you could be jeopardizing the financial well-being of the ones you love. It can seem like you will always have a chance to take care of these things later on, but unfortunately some families have lost a great deal of money needlessly because of the procrastination of a provider.
- Preparing for Coronavirus - March 10, 2020
- Incapacity Planning - December 20, 2018
- Special Accounts for People with Special Needs - December 17, 2018