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16. |
Exchanging
Annuities |
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You
can roll-over a weak under-performing annuity into a stronger, more
competitive annuity, without having to pay deferred income taxes.
Thanks
to Section 1035 of the Internal Revenue Code, no income taxes are
paid on any of your annuity's growth during the course of the transfer.
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17. |
Use
Your Unified Credit |
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In
2002, every U.S. citizen can shelter up to $1,000,000 from estate
taxes at death. But did you know you could use that gift now?
You
can use the Unified Credit during your lifetime, and gift up to
$1,000,000 completely tax-free ($2 million for couples). This is
ideal when gifting appreciating assets that could be worth much
more in the future.
The
Unified Credit can save significant additional tax dollars when
utilized as part of a Shrinking Trust plan. A qualified SaveWealth
Advisor can explain more about this strategy.
The
Unified
Credit will gradually increase until estate taxes completely
disappear in 2010. But before you begin celebrating, consider this:
current legislation brings estate taxes the very next year in 2011
back to their current levels. And the Unified Credit will only protect
your assets at the current $1 million mark.
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18. |
Reducing
Taxes Through Trusts |
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It
is easy to minimize the estate tax bill after you and your spouse
pass away by doing some basic estate planning.
By
setting up an A/B Trust, your Trust will allow you to use you
and your spouse's Unified Credit much more efficiently.
Not
only can you save money on estate taxes, but your specific requests
will be carried through, and your heirs will see much more of your
hard-earned wealth pass to them estate tax-free.
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19. |
Give
to Those You Love |
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When
preparing your estate plan, an easy way to reduce immediate income
taxes is by bequeathing assets to your spouse.
The
Unlimited Marital Tax Deduction allows all property in one spouse's
estate to pass gift tax-free and estate tax-free to the other spouse.
This
strategy is ideal for estates under $1 million in net worth. Estates
over that value can use estate planning techniques to effectively
double the amount of assets that can be transferred to loved ones,
estate tax-free.
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20. |
Consider
a QTIP |
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Have
you heard about QTIPs? And we don't mean the one for your ears.
A
Qualified Terminable Interest Property Trust (QTIP), similar
to an A/B Trust, takes full advantage of the Unlimited Marital Deduction.
Unlike an A/B Trust, however, a separate trustee will determine
distributions after the second spouse passes away.
The
QTIP is especially useful in situations where a second marriage
has occurred, and the grantor wishes to ensure children from a previous
marriage are partial (if not whole) beneficiaries of the grantor's
estate.
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Capital Gains |
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Mortgage and Equity |
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Education Tax Breaks |
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Gifting Options |
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Sheltering Rental Income |
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Using Your Unified Credit |
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Social Security |
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Tax-Free Munis |
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Estate Tax Reductions |
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Life Insurance |
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IRAs and 401k Plans |
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And much more |
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