| We pay taxes, based on income each and every | | | | avoid the estate tax, they often use rather |
| working years of our lives, but according to | | | | mundane estate planning practices. This |
| Uncle Sam that's not enough, so we pay taxes | | | | process doesn't have to be a complicated one. |
| on death too. As far as taxes go, the estate | | | | The simplest step to reducing your taxable |
| tax has always been one of the least accepted | | | | estate is gifting. You can eliminate large |
| forms of taxation. It is a serious revenue | | | | amounts of your estate by simply gifting. |
| generator for the coffers of the US | | | | Current law allows for a rather large amount |
| government. There has been much talk in | | | | of money to be gifted, per individual. So, by |
| recent years about the repeal of the estate | | | | gifting to family or predetermined |
| tax, in order to do so we will have to find | | | | beneficiary such as a charity you can start |
| revenue for another tax source to replace the | | | | reducing your estate. And the beauty of |
| estate tax. This is easier said than done, so | | | | gifting is that there is no limit on how many |
| we wait. And we may be waiting for a long | | | | individuals you can give to. Why wait till |
| time, as there doesn't seem to be a clear | | | | you die to tax your estate when you can gift |
| solution. | | | | it to the same beneficiaries free from the |
| | | | estate tax. |
| The estate tax is often referred to as the | | | | |
| double tax, as it is a second tax. | | | | The other popular method to reduce estate |
| Essentially the estate tax is a form of | | | | taxes is life insurance planning. Life |
| double taxation, since it's taxing money that | | | | insurance policies are utilized by the rich |
| really has already been taxed. Though it may | | | | to find any estate tax bill that may be |
| not seem fair, it's currently the way it is. | | | | incurred by future generations. Life |
| The good news is that there are ways to avoid | | | | insurance can provide a large amount of |
| this estate tax, regardless of your tax rate. | | | | leverage with a rather small initial outlay. |
| For the rich, the estate tax is not referred | | | | A large estate, with potentially large estate |
| to as the double tax, but rather the | | | | tax consequences can be covered with a rather |
| volunteer tax. For these individuals who | | | | small life insurance premium. And because |
| might be classified in the highest tax rate, | | | | life insurance proceeds are not taxable, the |
| are often well aware, when it comes to | | | | life insurance payout is completely free of |
| avoiding the estate tax. | | | | tax, when set up properly. This is why life |
| | | | insurance has been an integral part of estate |
| All too often, it's the middle class who | | | | planning for years. In fact, life insurance |
| aren't well-versed in estate planning, and | | | | planning is worth taking a closer look at for |
| that end up footing the estate tax bill. This | | | | your estate planning needs. This is not just |
| is common for even those that may be in a | | | | exclusive to avoiding the estate tax. The |
| lower tax rate. All they need is a little bit | | | | synergistic effect, along with the tax |
| of knowledge, and they too can eliminate the | | | | advantage of life insurance, makes it an |
| estate tax. To touch on a few of the | | | | excellent tool for the transfer of wealth. |
| techniques that the ultra rich utilize to | | | | |