Search Site
Menu
Die In 2010 And Save

The federal estate tax exemption of  $3.5 million expired on December 31, 2009. There is absolutely no federal estate tax for 2010 and unless Congress acts, the exemption for 2011 will be $1 million. Here are some ways to shelter your assets for 2011 and beyond since the “die in 2010 and save” strategy just seems  all wrong in so many ways.

1. Take advantage of the marital deduction. Any amount passing from one spouse to another is free of estate taxes. Therefore it is important to title assets between spouses and prepare wills and or trusts to take advantage of the use of one or both of these exemptions to the extent available.

2. Make tax- free gift of $13,000 to any number of beneficiaries each year, called the annual exclusion. The annual exclusion is $26,000 when a husband and wife both join in  the gift.

3. Consider a life insurance trust. If the trust owns the insurance and is set up and administered properly, the proceeds of the insurance policy will not be included in the estate. Instead,  the proceeds will pass tax-free to the heirs.

4. Spend money. Charitable gifts offer income tax as well as estate tax benefits. Also,  direct payments of tuition bills and medical bills for others are not considered gifts if the payments are made directly to the providers.

To do nothing at all will only benefit the government and potentially lower the amount your heirs receive after you die. Your hard earned money is better off in their hands than the hands of the IRS!

If you would like to discuss your estate plan, please call my office or e-mail me at [email protected].

Share this:

Like this:

LikeLoading…

Related

Leave a Reply

Your email address will not be published. Required fields are marked *

Client Reviews
  • "My name is Emilio. When I was buying my property, I hired Mr William J Reinhardt Jr as my Real Estate Attorney, it was one of the best decision I ever made because he did everything in his power to make sure my purchase was successful. For example, The utilities bills left over by the person who owned the property before me. I said thank you to Bill for not allow me to pay these costly bills." - 5.0 stars | Posted by Emilio Bien Aime | October 1, 2019

  • "Mr. William Reinhardt Jr. is my lawyer for many years. My family and I bought and sold properties with his help and were very satisfied. I recommend Mr. Reinhardt to anyone. I give him a 5-star review." - 5.0 stars | Posted by Diana | September 19, 2019

  • "My husband and I loved working with William. He was very professional, efficient and went above and beyond to help us. We would HIGHLY recommend." - 5.0 stars | Posted by Leeann | September 13, 2019

Contact us

Quick Contact Form