Taxes
'There are two systems of taxation in our country:
one for the informed and one for the uninformed.'
-- Judge Learned Hand (1872-1961)
Most seniors, especially those who have not taken the time to sit with a qualified Estate or Financial Planner, pay too much in Income tax and will ultimately pay to much in taxes and expenses whey they die. Almost every client we sit with has too much taxable income that they aren’t spending!
We don't regularly do tax returns for our clients, but we do know how to reduce taxable income. We have accountants and CPA's available that we work directly with to substantially benefit many of our clients.Why pay tax on money you aren’t spending?
While there are many ways to save on taxes, one of the best and safest ways is to place the money that you don’t spend or are just using the income from, into tax deferred or tax free investments.
Annuities usually pay more than CD’s and Money Markets with the added benefit of tax deferral. YOU have control over when the taxes get paid. This also allows your money to grow faster because the interest you would have normally paid taxes on, collects more interest, which allows your savings to grow faster. (Triple compounding)
Annuities also usually avoid PROBATE. This means that your heirs will receive their money faster, usually within weeks, instead of 9 months to 2 years with 11 - 13 months being the average we see in Pennsylvania.
Annuities can have more flexibility than CD’s.
Annuities can lower your taxable income, reducing or eliminating the taxes on your Social Security Income. Tax Free Bonds don’t.
Certain Annuities can have special benefits in regard to Medicaid Planning and the recovery laws
Guaranteed Fixed Equity Indexed Annuities have the potential to out perform traditional annuities without additional risk. Don't get these confused with Variable Annuities that have the potential to lose money when the markets tank. GFEIA's guarantee your principle PLUS any gains that are annually locked in, allowing only an upward ratched effect toward your goal! These can be the perfect tool for retirees. They can allow for better returns than other safe vehicles without adding risk.
OUR CLIENTS DON'T LOSE MONEY WHEN THE MARKETS TANK!!! How are you doing?
There are also Immediate annuities that allow you to create an income stream that you can never outlive. The tax benefits of an Immediate annuity can have a significant impact on lowering your taxable income, thus increasing your spendable income!
A 70 year old with a $24,000 per year interest income could reduce their tax burden (from this income) by 50%-75%.
So, why not call Integrity Estate Advisors today to see how you may benefit from these fantastic Estate Planning tools.
Many people decide to procrastinate and call us in “CRISIS MANAGEMENT MODE.” Usually this limits the amount of help anyone can offer. Act now…. Don’t procrastinate.
Estates over $2 million
Everyone is entitled to a Unified Credit of $3.5 million dollars for 2009. The only problem is that when a spouse dies and passes their estate or their portion of the estate to their living spouse, the 2nd Unified Credit is lost.
Example:
Fred and Wilma had an estate valued at $4.5 million dollars. The way
most people have set up their estate is with a simple will, powers of
attorney, and a living will. This ‘Traditional’ method will potentially
cost the heirs $450,000 in Federal Estate Taxes that could have been
avoided with taking the time to create a proper plan and a $1000 -
$2000 set of documents. This situation is more common than not! There
are ways to maintain the Unified Credit within a will with proper
wording too.
Is a Doctor a Doctor for anything or would you go to a specialist for a cardiac problem? The same holds true with your estate planning needs. There are Insurance Agents, Stock Brokers, product pushers, Attorneys, CPA’s, etc., who may be nice people and really great at what they do, but unless they specialize in the area of estate planning, you may not have the tools, documents, and information needed to achieve your desired results. In most cases we have encountered, the people have either tried to take the “SELF SERVE” approach or had their generalist attorney, CPA, Insurance agent, offer their advice and in those same instances, we found many changes that had to be made to achieve the desired results. Unless the professional has abundant information and education on both sides of an issue, you will get a biased view. (ie: Trust vs. Will, Permanent Insurance or Term, working with an order taker or a qualified advisor etc.)
We have met with many attorneys, asked specific questions to find out
their areas of knowledge. We found that many, who advertise estate
planning, are not trained in any estate planning techniques but a simple
will, power of attorney, and living wills. They are basically
looking to gather as many wills as possible to probate at a later
date...possibly for retirement. The average fees we have seen
charged is 5%, meaning a $10,000 attorney fee for a $200,000 gross estate.
The
attorneys on our team usually charge by the hour, not a percentage of
your estate. This is usually the only fair way to charge. Most times,
a $200,000 estate takes the same time to administer as a $500,000
estate or $1,000,000 estate.
Yes, there are attorneys who do know how to do "Their Part" of estate planning, but how do you know who they are? We recommend first talking with a competent Estate Planning Advisor, who may have working relationships with local attorneys.
Integrity Estate Advisors work with several local attorneys who have experience in planning minimal estates to large $100,000,000 estates. We earn no fees from these attorneys and offer the qualified referrals as part of our comprehensive estate planning service
Because Elvis Presley lived for the day and didn’t plan for
his future,
his estate lost 73% to taxes, leaving only $2.8 million of his $10.2
million dollar estate to his beneficiaries. This was a voluntary loss!
He didn't take the time to plan...to show his heirs that he cared about
what happened after his death....when ever it may have occurred. Don't
procrastinate!
Bing Crosby, on the other hand, planned and no one knows what his worth was and who got how much. It’s YOUR choice.