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 Services
- Estate Planning
Minimizing taxes is just one benefit of estate planning. You also
need to provide the cash necessary to pay estate taxes and
administrative costs without depleting your estate. There are a
number of ways in which you can pay for estate expenses. With proper
planning, you can determine which method is the best for your
financial situation with the objective of easing the burden of your
heirs.
There is a perception today that estate planning means planning only
for the distribution of property at your death. In reality, the
purpose of estate planning should be for you to enhance your estate
during your accumulation years, to maintain your financial security
during your retirement years, and to provide for the most efficient
transfer of property at your death.
Passing your wealth on to your heirs through your estate requires
more than just a will, especially if your goal is to protect your
assets from estate taxes.
Please contact us for further
information and to learn how your heirs can benefit from an
irrevocable life insurance trust and from charitable gifting
strategies.
Neither Heritage Financial North nor our agents give legal or
tax advice. You should always seek the opinion of your own legal or
tax advisor prior to any transaction.
Estate and Gift Tax Rates
The annual exclusion for gifts is raised to $12,000 beginning in
2006.
The applicable exclusion amount is increased to $2,000,000 for
estates and remains at $1,000,000 for gifts.
The following table shows how the estate-tax rate will decrease over
the next several years and how it reverts to pre-tax law levels in
2011 with the expiration of the new tax law:
| YEAR |
ESTATE TAX EXEMPTION |
MAXIMUM ESTATE TAX RATE |
| 2003 |
$1 million |
49% |
| 2004 |
$1.5 million |
48% |
| 2005 |
$1.5 million |
47% |
| 2006 |
$2 million |
46% |
| 2007 |
$2 million |
45% |
| 2008 |
$2 million |
45% |
| 2009 |
$3.5 million |
45% |
| 2010 |
Repeal of estate tax |
35% |
| 2011 |
$1 million |
55% |
The above information is educational and should not be
interpreted as legal advice. For advice that is specific to your
circumstances, you should consult a legal adviser.
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