You have spent considerable effort and time the accumulating assets over a lifetime, and the more successful you have been the more your exposure to estate taxes has increased. Since these rates are high, up to 45%, it is important to reduce estate tax exposure as much as possible. Tax favored accounts such as IRA’s, 401k’s and tax deferred annuities face even higher exposure, possibly more than 70%!
The largest check your children may ever write will be the one to the IRS for estate taxes. Understandably, you don’t want this to happen. When it comes to your heirs you also want it to benefit your children, not their creditors or ex-spouses. You also worry the inheritance may destroy your children and grandchildren’s drive and motivation.
Our team, which includes Attorneys, CPA’s, Certified Financial Planners and Fee-only Insurance Specialists, will work closely with you and your other advisors to see that your estate plan documents reflect your goals. To maximize your tax savings, we implement strategies both during your life and after your gone.
Every bit as important, however, is helping you take care of your heirs, keep your family business viable, make a gift of art or fund a charity. You want control over your legacy, not the State.
Our Financial and Estate Planning Team will work to analyze your existing plan to make sure that the plan:
- Establishes and maintains a process for your wealth to benefit the next generation and beyond, and…
- Creates a structure which strives to avoid animosity and ensure any charitable goals are fulfilled as you intend.
The plan will be reviewed and updated:
- Whenever laws are changed.
- Whenever your situation changes.
- In any case at least every five years.
Savvy Family Gifts
With savvy planning, you can minimize the impact of taxes and maximize what is left to your heirs and the charities you support. There are techniques with fancy titles and acronyms which can be used to transfer a lot more than $12,000/year to other family members while you are alive.
First we will need to confirm you have enough to meet your own lifestyle needs and then some. After that has been accomplished we can help you sort through benefits and costs of various lifetime gifting strategies such as family limited partnership or LLC vehicles, GRATs, low-interest loans, installment sales, QPRTs, Charitable Remainder Trusts and private annuities. Our team and extensive bench of crack lawyers will work to assure you receive advice that is timely and in accordance with current tax laws. In addition we will work with you to ensure that asset protection strategies are in place to protect your gifts from the unfortunate rash decisions of younger heirs who may lack the maturity to avoid making themselves a target of creditors and predators.
Savvy Charitable Gifting
Our firms President has a personal motto:
The First Third of Your Life You’re Learning
The Second Third, Earning
The Last Third, Giving Back
You can learn more about where we are giving back here. We believe giving is a part of attaining a life lived well. We try to make you, your family and your charities wealthier, too.
The Keys to Savvy Charitable Gifting
Always gift appreciated assets. Cash can be used to support your lifestyle. Maximize the impact of your gifts! Leverage your ability to give and live by maximizing the income and estate tax benefits of your charitable gifts. Give less to the IRS and more to your charities. Let us help you sort through the acronym soup of charitable giving techniques to make the most of your gifts:
- CLAT - Charitable Lead Annuity Trust
- CRUT – Charitable Remainder Unitrust
- CRAT – Charitable Remainder Annuity Trust
- DAF – Donor Advised Fund
- Private Foundations
You have a number of different accounts where your money is kept. There are checking accounts, savings accounts, investment accounts. Some of these accounts have been taxed. IRAs and retirement plans have never been taxed. At 70 ½ the IRS will make you start withdrawing money from your tax sheltered accounts and pay taxes. The penalties for not taking enough out are onerous.
From where and when to take money to provide income when you leave your job can be confusing. The income tax, estate tax, investment location and the consistency of cash flow all figure into the decision. Unfortunately any money in the accounts once you pass away pays both estate and income taxes.
Let us help you determine how much to withdraw and from which accounts to provide the income you need while preserving your estate for your heirs and other beneficiaries.
Retirement Plan Design
If you own your own businesses, are a partner in a professional practice, or you are sole proprietor, the number of options now available often comes as a surprise, even to trusted advisers such as CPAs or attorneys. New design ideas can shelter more of your income from taxes. Creative design can help you attract and retain key employees for your business.
Let us help design a program that works in the context of you and your family’s goals. At Thompson Creek we stress complete fee transparency from the various providers who are part of administering your plans. No hidden commissions, revenue sharing or other ways to disguise the cost and stand in the way of you and your employees’ retirement success. We can provide actively managed models bringing our investment insights to bear on their, and your, success. We provide a level of service that sets us apart in our efforts to provide what your employees need to be successful.
If you’d like to talk further with us about your unique situation, please contact us today. There is no charge for any initial discussions.