Write your Will

A very interesting approach to an often touchy subject, the following information was found in the October 2007 Maxim Magazine.  Not a very cheerful topic, but necessary.

Death and taxes: how to prepare for one while reducing the other.

1. Die like a pro – Even a signing mistake can weaken your will’s validity, and it only take one greedy nephew to tie up in court for months and lop off up to eight percent of your estate in legal fees. Skip the sites and get a flesh-and-blood attorney to draft you an airtight document.

2. Build trusts – According to David t. Phillips, author of Estate Planning Made Easy, leaving everything to your spouse could mean losing 25 percent of a $4 million estate to taxes. Shelter half of that in a Bypass Trust instead; Wifey gets paid, the kiddies get their tax-exempt cash.

3. Beyond the grave – Unless you want your trust-fund baby living as an “artist” in a $13 million loft purchased with your retirement, set some rules. Whether its graduating college, getting marries, or turning 30, any milestone can determine when they receive your hard earned dough.

4. Live and Die – Real estate is a great investment…until taxes are due. To pay off death taxes imposed on your home or business, jack up your life insurance policy (otherwise you’ll lose the assets just to pay the IRS). Just $12,000 in payments can cover an estate-tax bill of $1 million!

~ by thelibrarian2008 on December 15, 2007.