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Top Ten Tips for Estate Tax Planning


Top Ten Tips for Estate Tax Planning

If you’ve got a will, that’s great. But if you’ve got a will that is not part of a larger plan to minimize estate taxes and you don’t have other important documents, like durable powers of attorney or healthcare proxy, then you and your heirs are missing out on important tools to protect you. A recent article in The Naples Daily News, “Tax Secrets: Top 10 tips for winning the estate tax game,” offers some excellent tips on taxes.

  1. Don’t keep property in joint tenancy.
  2. Don’t put money in a pension or IRA, if you’re rich or likely to become rich (in the highest income tax and estate tax bracket). Qualified plans are double taxed up to 64% of your plan funds.
  3. Your wealth transfer plan to legally reduce or eliminate the estate tax should start ASAP.
  4. Don’t put real estate in a corporation. Consider using a family limited partnership or an LLC.
  5. Use a “Retirement Plan Rescue” (RPR), if you have over $300,000 in a qualified plan. This has the power to increase your after-tax dollars by a multiple of 10 or more.
  6. Create an IDT or intentionally defective trust, if you want to make a tax-free transfer of your family-owned business to your kids and remain in control for life.
  7. Do create a FLIP (family limited partnership) for all of your assets, like income-producing real estate, vacant land, and your stock and bond portfolio that is not included in another tool. A FLIP may reduce the value of these assets by 35% for estate tax purposes.
  8. Make sure that all your wealth passes intact to your family.
  9. Make sure that your attorney uses strategies protecting you from creditors and potential lawsuits.
  10. Your estate plan really needs to include two separate pieces. The will component of your estate plan is concerned with distributing your assets in the most tax-effective manner. Your estate plan should also be a plan for your life, with the end goal of maintaining the lifestyle you have worked to build and protecting you, your spouse and your family.

Do you live in Miami-Dade, Broward, or Palm Beach counties in Florida? Laws are constantly changing-- has your estate plan been reviewed in the last 2-3 years? Call me (954-888-1747) right away for peace of mind. I can help! #TopTenEstatePlanningTip

  • My practice is exclusively estate planning and probate,
  • I have prepared numerous estate plans in 16 years of practice,
  • I have administered estates and trusts through Probate all over Florida,
  • I am a Certified Financial Planner Professional™, and
  • I am here for YOU today and there for your FAMILY tomorrow.

Reference: Naples Daily News (January 7, 2017) “Tax Secrets: Top 10 tips for winning the estate tax game”

Why would we recommend D.T.F.? Several Reasons: Your ability to explain complex estate problems, clearly and patiently; your total lack of arrogance and pretense; a strong feeling that you are motivated by what you perceive is best for your client, rather than what would generate the largest legal fees; finally, and importantly, you are a lovely guy. A.C.

Two words cannot sum up the entire process of creating my “trust.” I enjoyed your attention to detail, your patience of explaining terms and conditions until I understood, also giving me copies to read and understand. Thank you for your suggestions on what was best for “me” but still allowing me to make my choice. Most of all, thank you for thinking of “me.” Wells Fargo said “you were the best” I cannot deny that. Again thank you very much for everything. Anna is an asset or a compliment to the firm. She is warm and very caring. It was great doing business. Thank you.