Don’t forget Wealth Transfer
Don’t Forget Wealth Transfer & Estate Planning
Art Glasgow, Peck-Glasgow Insurance
October 11, 2010
December 31, 2010 will mark the expiration of what we often refer to as the Bush Tax Cuts. This act was officially called "The Economic Growth and Tax Reconciliation Act of 2001", an effects the amount
of estate that you can transfer to your heirs. Unless congress updates, extends or passes new legislation, January 1, 2011 the rules will revert back to those in place prior to the Bush Tax cuts that we have been living by during most of the last decade.
The estate tax exemption for 2009 was $3.5 million, $7 million for couples. A 45% estate tax was to be assessed on any estate value over the exemption. The act scheduled a temporary repeal of the
estate tax during 2010. However we are now facing a return to the pre-act limits in 2011. The estate tax will return to 55% on estate values over a $1 million exemption limit.
If you have an estate over $1 million and fail to plan, your beneficiaries could receive a fraction of what you intended, depending on when your estate is transferred. An effective life insurance
strategy, using an Irrevocable Life Insurance Trust, can help protect your wealth for beneficiaries by providing Liquidity when it is needed to pay estate settlement costs and taxes; and provide proceeds that remain outside the value of your taxable estate.
While this process sounds complicated, it can be relatively simple when you utilize the services of a competent tax attorney or Certified Public Accountant. An insurance agent educated in the use
of life insurance to accomplish the goals of estate planning is a must!
Remember failing to plan is planning to fail as the saying goes. This cliche hold true for many things including your finances. Without proper planning, your goals may retain in sight but out of
reach. If you have not planned for wealth transfer, contact us today if you feel you estate is in need of planning. Make sure your dreams are fulfilled.