protect your lifetime earnings and financial legacy...avoid probate and finding tax loopholes
i was taught as a child the need to earn an income and invest for long term. be prepared for the worst. though not a millionaire yet, i have done very well. at age 58 my home is paid for and i was able to retire without a pension or social security for an income. now i am helping my 82 year old father during his last chapter of life. my mother died last august very unexpectedly. everything was arranged to go to her assuming my father would go first. fortunately all her accounts\vehicles\real estate\investments etc. had his or my name on them and there was nothing to declare in the probate process. she had a large life insurance policy earning 4% and a large savings account there was no tax required to be paid. she did have a large annuity she left to us 3 kids we did have to declare as income and pay tax on.
we are making updates to beneficiaries, legal documents and financial accounts, etc. we have discovered some strategies to reduce the tax burden on 40 years of growth in value of his real estate and investments. THIS ONLY WORKS IF YOU HAVE A TRUSTING RELATIONSHIP WITH THOSE NAMED AS EXECUTOR\BENEFICIARY. I know some familys go to war when a parent dies!!
on the real estate my and my siblings names have been added to the deed. if my father is able to continue living in the house another 5 years the tax requirement upon it being sold is waived. we are probably too late for this strategy to work.
dad's investment portfolio includes 2 large variable annuitys that have been renewed repeatedly several times over the years. sadly his advisor has done nothing to protect the gains they have earned from dropping!! and this huge gain over the decades has created a large tax burden for the beneficiary upon payout!!
he now has a new advisor who understands these issues. there are a FEW companies who have an agreement with IRS to allow annuity payout over a number of years AND spread the tax over that period. each payout will include a portion of the original principle. normally you are forced to withdraw the LAST gains and pay tax on the full withdrawl amount. the original principle remains in the account until the last payments. just like a home mortage in reverse. you pay all interest for many years up front!! while the principle barely moves.
GOOD LUCK to all with your financial planning and strategy...hope it is more than a piece of bright shiny cardbord\aka lottery ticket.
we are making updates to beneficiaries, legal documents and financial accounts, etc. we have discovered some strategies to reduce the tax burden on 40 years of growth in value of his real estate and investments. THIS ONLY WORKS IF YOU HAVE A TRUSTING RELATIONSHIP WITH THOSE NAMED AS EXECUTOR\BENEFICIARY. I know some familys go to war when a parent dies!!
on the real estate my and my siblings names have been added to the deed. if my father is able to continue living in the house another 5 years the tax requirement upon it being sold is waived. we are probably too late for this strategy to work.
dad's investment portfolio includes 2 large variable annuitys that have been renewed repeatedly several times over the years. sadly his advisor has done nothing to protect the gains they have earned from dropping!! and this huge gain over the decades has created a large tax burden for the beneficiary upon payout!!
he now has a new advisor who understands these issues. there are a FEW companies who have an agreement with IRS to allow annuity payout over a number of years AND spread the tax over that period. each payout will include a portion of the original principle. normally you are forced to withdraw the LAST gains and pay tax on the full withdrawl amount. the original principle remains in the account until the last payments. just like a home mortage in reverse. you pay all interest for many years up front!! while the principle barely moves.
GOOD LUCK to all with your financial planning and strategy...hope it is more than a piece of bright shiny cardbord\aka lottery ticket.
56-60, M