The following links are for educational and illustrative purposes only and should not be considered as either individual advice or as a substitute for accounting, legal and other professional services. Always consult a competent professional for answers specific to your questions and circumstances.
WHAT IS ESTATE PLANNING?
Estate planning addresses two very important areas:
- In the event you become mentally incapacitated, estate planning protects you and names who will make financial and health care decisions for you. It also provides instructions for the person(s) you name to follow in making financial and health care decisions on your behalf. Proper estate planning typically allows you to avoid any future court involvement in the event you become mentally incapacitated because your estate planning documents provide legal authority to your appointed agent(s) to manage your affairs in such an event. The most common examples of these documents are a Revocable Living Trust, a Durable Power of Attorney for Finances, and an Advanced Health Care Directive.
- Estate planning also offers protection by providing for the orderly disposition of your assets upon your passing to your named beneficiaries while also avoiding the expensive court probate process. This is most commonly done through a Revocable Living Trust.
Properly drafted estate planning documents provide for:
- The time and manner your named beneficiaries will receive your assets,
- Preserves the maximum amount of wealth possible for your beneficiaries by minimizing tax liability,
- Appoints an agent(s) to make financial and medical decisions for you in the event you are unable to yourself (therefore avoiding a potential court conservatorship), and
- Names a guardian for your minor children in the event of your passing (if applicable).
Estate planning is often a delicate and uncomfortable topic to consider. However, by planning in advance you can protect your family and loved ones from much anxiety and later expense, while also ensuring that your estate goals are achieved.
Estate and Gift Taxes
Estate Tax The estate tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death.
Frequently Asked Questions on Estate Taxes Find some of the more common questions dealing with basic estate tax issues.
Gift Tax If you give someone money or property during your life, you may be subject to federal gift tax.
Frequently Asked Questions on Gift Taxes Find some of the more common questions dealing with gift tax issues as well as some examples of how different types of gifts are treated.
Filing Estate and Gift Tax Returns Learn when to file estate and gift taxes, where to send your returns, and get contact information if you need help.
What's New - Estate and Gift Tax Stay up to date with the tax law changes related to estate and gift taxes.
Deceased Taxpayers - Probate, Filing Estate and Individual Returns, Paying Taxes Due Information to help you resolve the final tax issues of a deceased taxpayer and their estate.
New Address to Send Applications for Discharge of the Estate Tax Lien As of June 2016, all applications for discharge of any estate tax lien will be processed by the IRS’s Advisory Estate Tax Lien Group.
Source: irs.gov
To find out more about estate and gift tax planning services offered through RFG, contact us at (818) 330-9610 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
