Your Guide To Estate Taxes

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you have been following our blog, then you know that this month we have placed much of our focus on estate planning. From defining the different types of beneficiaries to talking about protecting children, including charities in wills and how you can minimize estate taxes, we are your ultimate source of information when it comes to this particular financial topic. And today, we're going to continue by discussing a few other important things pertaining to estate taxes that we feel you should know:

1. As defined by the IRS, an estate tax is a "tax on your right to transfer property at your death." The tax value includes all of your assets and interests you have upon the day of your passing.
2. Estates that are not too complex in nature (for example, cash or joint property), normally do not require that an estate tax return be filed. However, when assets exceed $5,430,000 (as of 2015), filing is a must.
3. A gift-tax exemption is another approach you can use to avoid owing taxes. But, keep in mind that this refers to gifts that are given during your lifetime. According to this exemption, you can technically hand out $5.43 million without being held responsible for taxes if this is the route you choose.

For more details about estate taxes, including additional information about tax exemptions and tax exclusions, click here.

Here at American Investment Planners LLC, we understand that estate planning can be tricky, especially when it comes to dealing with taxes - that's why we're here to help! To learn more about our estate planning services, please be sure to visit our website or give us a call at (516) 932-5130.

Tips For Minimizing Estate Taxes

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Like everything else, your estate is subject to taxes, which means that you must consider them when planning for what will happen to it upon your passing. But, just like everyone else, we know that you'd probably like to find ways to minimize just how costly your taxes are. So can it be done? With the below tips, it's very well possible:

Plan in advance: The longer you wait to take care of estate planning matters, the more likely it is that your estate will have higher taxes to deal with. Simply put, that's because you and your financial planner will have less time to develop strategic solutions that could potentially keep unbearable taxes at an all time low. The sooner you meet with a team like American Investment Planners LLC, the easier it will be to create a plan that puts both you and your estate first - not taxes.

Take away assets: When you remove assets from your estate completely, you can minimize tax costs since there is naturally less to be taxed on! This means that when you plan for what will happen to your estate, you may want to consider alternative options for those assets that are likely to come at a high price. To best figure out how to distribute assets without falling victim to crazy-high estate taxes, speak with your financial planner!

Use marital transfers: So long as your spouse is a U.S citizen, any assets you leave in their name can typically be received on a tax free basis. However, you'll want to keep in mind that once the remaining spouse passes, taxes will need to be paid on their estate and what was left, so you'll need to think carefully about who will really inherit estate taxes in the long run. The good news, though? There are some exemptions that can be made - just ask your team of advisors about which ones may benefit you!

Although taxes are generally unavoidable, when you really research all your options you may just find that you can minimize how much you or your estate is responsible for paying in various situations. If it's time for you to work on your estate plan and you're hoping to keep your estate taxes on the low end, contact us at (516) 932-5130 to learn which solutions may be best for you!