Plan Estate So Heirs Aren’t Doomed by Taxes

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…

Personal Financial Planning for Family Business Owners: Providing for the Future Without Rocki

Personal Financial Planning
for Family Business Owners:
Providing for the Future Without Rocki

How do you plan for retirement when most of your wealth is tied up in the business? That’s the challenge facing many owners of small and mid-size companies.

For owners of family businesses, though, that is just the beginning of the challenge. Because they must not only deal with approaches for generating retirement income, but with delicate family planning issues as well.

If the next generation of family members won’t be involved in the business, personal financial planning could take one course. If some members of the next generation want to be in the business and some don’t, personal financial planning could take another course. And if all members of the next generation expect to be in the business, it could take still another direction. More…