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Tax
Saving Tips
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Armond
Budish - Nationally recognized attorney, author and host
of WKYC TV 3's "Golden Opportunities".
 | Estate Tax Changes
The estate tax will begin a temporary "phase-out"
beginning in 2002 when the tax exemption will increase from
$675,000 to $1,000,000. The exemption continues to increase
until 2009 when it reaches 3,500,000. The estate tax will be
repealed entirely for one year in 2010, and will return to an
exemption of $1,000,000 in 2011.
| | Joint Trusts People with
estates of $1,000,000 or less may no longer need A-B Trusts.
Consider switching to a joint trust.
| Tax Savings with A-B Trusts
People with estates in excess of $1,000,000 may want to consider
estate planning with two trusts. The Marital or A-B Trust allows a
married couple to pass the maximum amount of their estate to their
spouse and children, avoiding probate and with considerable
savings on federal estate taxes.
| Insurance and IRAs
Consider using distributions from IRA's to purchase life
insurance. By transferring the life insurance into an Irrevocable
Insurance Trust, you avoid income and estate taxes and can use the
benefit to cover estate taxes on your IRA's at death.
| Roth IRAs Consider
changing existing IRA's to Roth IRA's. Money in a Roth IRA grows
income tax free, which is a tremendous benefit.
| Bloodline Trusts This form
of trust is designed to keep assets in your bloodline. In the
event of a divorce or death of a married child, this form of trust
can prevent a son-in-law or daughter-in-law from receiving assets
intended for your grandchildren and great-grandchildren.
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Charitable
Giving with Benefits When making a gift to a charitable
organization, consider a charitable gift annuity. You'll receive
guaranteed high rates of return for life on your gift, plus tax
benefits including an immediate charitable tax deduction, savings
on capital gains taxes and possible tax-free income. The remaining
funds following your death are given to the charity. A charitable
gift annuity may be coupled with life insurance to preserve your
heir's inheritance.
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Provided with Mr. Budish's Permission
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Hot tip |
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Be sure to fix sticky window, loose cupboard knobs and leaky
faucets before marketing your home. When buyers see small
items that need attention, they wonder about the condition
of major systems.
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Consultations |
Please call or e-mail us for a selling or buying consultation. |
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