Can Estate Planning help save my Estate from paying taxes?
Another significant objective of estate planning is to minimize or avoid estate or inheritance taxes altogether at the time of death. Many persons are shocked when they learn the amount an estate can be taxed if thorough planning is not done in advance. At present, federal estate tax rates can be as high as 46%. This rate is shocking when you consider that the estate tax is being imposed on assets that have already been taxed for income. Under present law, estates in excess of $2,000,000 are particularly at risk for estate taxes. With the use of good planning and the establishment of properly prepared Living Trusts, persons can significantly reduce (and in some cases eliminate) the estate tax bite. For example, under present law, if a married couple has a net worth of $4,000,000, with no estate planning at the death of the second spouse, their estate could pay in excess of $900,000 in estate or inheritance taxes. However, with proper planning, this tax could be reduced to zero. The tec
