Category Archives: Tax Issues

Plan Estate So Heirs Aren’t Doomed by Taxes

Estate Planning, Tax Issues • Tags: ,

Plan Estate So Heirs Aren’t Doomed by Taxes

The News Journal
by Nancy F. Blumberg, CPA, CFP
Simon Master Sidlow, P.A.

If you are a high-income earner, you may have accumulated a significant sum over the years.

Often your retirement plan represents the largest asset of your net worth. Many people also have accumulated substantial assets in individual retirement accounts. Planning for the distribution of those accounts during your lifetime, as well as at your death, provides both challenges and opportunities.

Pension plan assets are subject to several taxes after your death.First, those assets are included in your gross estate and are subject to Federal estate tax and state estate and/or inheritance taxes, if applicable.In addition, there is a 15 percent excise tax on the excess over $750,000(adjusted annually for inflation).

Then, even though these assets are included in the estate, they are subject to income tax accrued during your life but receivable after your death.Therefore, when your beneficiaries finally receive the after-tax funds, only 15 percent of the value may remain. More…

Naming an Executor is Important

Estate Planning, Ownership Transfer, Tax Issues • Tags: , ,

Naming an Executor is Important

The News Journal
by Nancy F. Blumberg, CPA, CFP
and John H. Sterling, CPA
Simon Master & Sidlow, P.A.

What is an executor of a will?It’s the person who handles the deceased’s affairs during the probate process.Without a will, the court will appoint someone to perform this function.

Therefore, it is important while a person is making out a will to name an executor and get his or her agreement to perform this function.It is also important for the person to discuss the responsibilities of the executor so the person knows what is expected.

Many people don’t realize the work that is involved.The executor’s job usually involves lots of time and effort and frequently exposes him or her to personal liability.

The executor locates the will, offers it for probate in the proper court, collects the assets so they can be distributed according to the terms of the will, safeguards the assets and makes sure they are appraised, files the necessary federal and state tax returns, pays any related taxes, cancels credit cards and various accounts, pays the debts of the estate and distributes the assets of the state. More…