Disinherit the Government

Most people realize they have an obligation to pay taxes and support local, state and the federal government. Most people also believe they should not pay more than necessary to these government agencies.

In creating a good estate plan, the goal of minimizing taxes is often part of the plan. Yet, fulfilling that goal might be difficult on your own. This is certainly a time and situation in which you want the professional guidance of an estate planning attorney.

One important rule to know is that a charitable estate gift can be one of the most efficient ways to disinherit the IRS.  Not everyone wishes to include a charitable component in their estate plan. That is fine, but the result could mean a tax consequence for your estate or your loved ones.

Each person, and thus each estate plan, is unique, but there are some general steps that can be implemented to reduce or eliminate a tax burden.

Know which of your assets have a potential tax consequence

IRA benefits are often taxable

Life Insurance and Roth IRA payments are not taxable

Real estate and investment accounts receive a step-up in basis (value) upon the death of the 

owner, which could eliminate capital gains and any related taxes for the heirs

Marital Property Agreements can move assets to a surviving spouse more easily

There are more strategies to help you avoid any additional tax burden, and especially work to reduce or eliminate a tax bill for your heirs.

If creating a plan that avoids giving more of your estate to the government appeals to you, contact me for a list of qualified estate planning attorneys. You, and your loved ones will be happy with the results. You can reach me at paul.snamiska@kmlhs.org or 262-677-4051.