Estate Tax Planning

Let's face it, estate planning is death planning... not a fun task. Most of the calls I get from new clients are, "Irv, will-you-do-my-estate-plan" calls. Some callers are as young as 35... rarely younger. About 90% are between 55 and 81... some older.

About two to three minutes into the call, I gently switch the conversation. We start talking about lifetime planning, wealth creation and how important your lifestyle — for the rest of your life — is. They love it. Then, we'll talk about how to create their personal "Wealth Transfer Plan."

How does a Wealth Transfer Plan differ from an Estate Plan?

A Wealth Transfer Plan concentrates on the specific assets that make up your wealth, rather than the estate tax caused by the total value of the assets. For example, if your assets total $10 million (it could be more or less), and the potential death taxes are $4 million, you are really worth only $6 million (after taxes). A Wealth Transfer Plan, instead of trying to lower the $4 million in taxes, causes 100 percent of the $10 million — every dollar of it — to be transferred to your family (all taxes, if any, paid in full).

IMPORTANT

A Wealth Transfer Plan is always a lifetime plan, which is designed to dovetail with your Estate Plan (really a death plan).

Why do most Estate Plans fail to take advantage of all the opportunities in the tax law?

The simple, but correct, answer is that conventional estate planning is bogged down in the terrible complexity of the tax laws without an organized system of dealing with the complex mess. The complexity has created a burgeoning estate planning industry (CPAs, lawyers, insurance agents, financial planners and bankers) ...with each trying to grab a piece of the action. When a person of wealth goes to his/her final reward, almost 100 percent of the time the IRS wins the tax game. Then, it's too late to work the tax magic taught on this website.

You and your family lose. Then your professional's input is usually limited to an after-the-fact business valuation for the estate. But it doesn't have to be that way.

To win the estate tax game, proper planning — a Wealth Transfer Plan — must be done while you are alive and well. A typical Wealth Transfer Plan includes the following:

• Business Succession Plan (usually tax-free)
• Wealth Transfer Plan (your non-business assets)
• Asset Protection Plan (for all of your assets)
• Life Insurance Plan (if you and/or your spouse are insurable)
• Tax-Free Wealth Creation Plan (a must if neither you nor your spouse is insurable... or the premium cost is too high)
• Retirement Plan (rarely is a profit-sharing plan, 401(k) or similar plan the best way)
• Estate Plan (must dovetail with the above plans)

How can you tell if your Wealth Transfer Plan (Plan) is done and done right?

After your Plan is done, you'll know it meets the highest possible standards if you are able to answer ‘Yes' to all of the following questions:

1. Does the Plan accomplish all of your pre-set goals?
2. Is the Plan flexible, so you can change it if circumstances change?
3. During your life do you have total control of all the assets — including your business — you want to control?
4. During your life and after your death, are your assets protected from creditors, potential plaintiffs and ex-spouses who divorce a family member?
5. After your death, does your Plan get all of your wealth — every dime of it — to your family? Or does your Plan actually increase the wealth your family will receive... tax-free?

IS YOUR ESTATE PLAN ALREADY DONE?

Ask and answer the same five questions. If you don't get a 'Yes' to all of them... get a SECOND OPINION

HAVEN'T STARTED YET?

That's fine. Here are two great options:

ORDER THE BOOK - Estate Tax Secrets of the Wealthy

ASK IRV ABOUT DEVELOPING YOUR PLAN

Or call Irv at (847)674-5295.