Your legacy is the influence that you will be leaving behind after you pass away. Clearly, you may have had an effect that is intangible, and this type of legacy is very important and meaningful. However, there is also such a thing as a financial legacy. It is important to plan ahead for the well-being of your loved ones and perhaps generations that have yet to be born if you are in possession of a considerable amount of wealth. One of the primary reasons why you must think things through quite … [Read more...]
What Is the Annual Gift Tax Exclusion in Hartford Connecticut?
You may hear that there is a federal gift tax that is unified with the estate tax. This is true. There is a unified exclusion or credit. It could be said that this is the amount that can be transferred before taxes would kick in. In 2014, the amount of the annual gift tax exclusion in Hartford Connecticut is $5.34 million. However, to fully understand your ability to give gifts in a tax-free manner, you need to understand a different gift tax exclusion that sits apart from the unified … [Read more...]
What Steps Can I Take to Preserve My Legacy?
When you are looking ahead toward the future you may start to think about your legacy. Indeed, there are a number of ways that you can proactively endeavor to have an influence even after you are gone. Charitable Giving One of the steps that you can take to preserve your legacy would be to set aside resources for the benefit of charitable causes. You probably have seen hospital wings, libraries and sections of libraries, university buildings, and even little league fields that are named after … [Read more...]
Should I Use My Unified Exclusion in Hartford Connecticut While I’m Living?
There is an estate tax in the United States, and there is also a gift tax. The two taxes are unified, so there is a unified exclusion. What Is the Unified Exclusion in Hartford Connecticut? The exclusion is also called a credit, and this is the amount of property that you can transfer to others without incurring any transfer taxes. In 2014 the amount of the unified exclusion is $5.34 million. You can transfer this amount to others free of gift and estate taxes. If you go above this amount, a tax … [Read more...]
Connecticut Estate Planning: What Is the Marital Deduction?
Most people have heard of income tax deductions, and there are income tax issues that involve married couples specifically. However, the term "marital deduction" has relevance within the estate planning community. It has nothing to do with income taxes in this context. What this refers to is the ability of a surviving spouse to inherit any sum of money from his or her deceased spouse free of the estate tax. There is a $5.25 million federal estate tax exclusion in place for 2013. It should be … [Read more...]
Unified Credit Increased for 2014
The estate tax on the federal level is something that is a threat to your financial legacy. We are talking about a progressive tax that tops out at 40 percent. This alone is enough to give you pause, but consider the fact that it can be imposed over multiple generations. The federal estate tax is unified with the federal gift tax. There is a unified credit or exclusion. This is the amount that you can transfer free of federal transfer taxes. It becomes applicable on transfers that exceed this … [Read more...]
How Do You Protect Assets?
There are various different objectives that you may have when you are planning your estate. The exact way that you ultimately proceed is going to depend on the specific nature of your circumstances. With this in mind, some people are concerned about asset protection. You want to be sure that the assets that you have accumulated remain in your possession for your own well-being. Since we are talking about estate planning, it is also important to protect inheritances that you intend to leave to … [Read more...]
How Can I Leave My Estate to My Spouse Tax-Free?
In the United States we have a federal estate tax. There is a federal estate tax credit or exclusion. Only the portion of your estate that exceeds the credit or exclusion would be taxable. If your estate's value does not exceed this amount, your estate would not be subject to the federal estate tax. How much is the amount of the federal estate tax exclusion? In 2013 this amount is $5.25 million. It is subject to annual adjustments to account for inflation. The Internal Revenue Service has … [Read more...]
