“A taxpayer is someone who works for the government, but doesn’t have to take the Civil Service Exam.” – Ronald Reagan
Is the government your partner? If so, wealth preservation may be an issue… expect Uncle Sam to want part of all you worked for when you die.
If you own raw land, a farm, a successsful business, or rental property, be careful; a portion of your estate may be siphoned off to pay federal and state death taxes, as well as fees and final expenses required to administer your estate. Your family then receives what is remaining after these estate settlement costs have been paid. Here’s an illustration of the situation your heirs could face:
The high cost of dying:
|
Federal and State Death Taxes |
<$$$ |
YOUR ESTATE: Personal Property Real Estate Business Interests Employer/Government Benefits Life Insurance |
$$$> |
Estate Administrative Costs |
|
$$$ v |
||||
|
YOUR FAMILY |
The good news is that with proper advance planning, you can make sure that more of your estate ultimately passes to your family!
It might be a good time to talk with your financial advisor.
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Opinions expressed are those of the author and nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional. The Independent Financial Group is a Registered Investment Advisor with offices located at 11707 Blossomwood Court; Moorpark, California 93021. IFG’s Founding Principal, Jim.Lorenzen, is a Certified Financial Planner® and an Accredited investment Fiduciary®. Mr. Lorenzen is also licensed for insurance as an independent agent under California license #0C00742. Primary asset custodian is Pershing Securities, owned by Bank of New York-Mellon. IFG and Pershing/BNY are not affiliated. Jim can be reached at 805.265.5416 or by emailing [email protected].
