Estate tax planning
Preparing for the estate tax should be an important consideration in your plan. Unless you plan to give all of your assets away to charity, there will be some tax liability – typically due 9 months after death. The combined federal and state tax rate can be as high as 45% of the total value of your estate. Because most people do not have 45% of their assets in cash, it’s important to determine how these taxes will be paid.
One of the best ways to fund your estate tax liability is through a properly structured life insurance policy. There are many available that are designed specifically to pay estate taxes. Because a life insurance policy pays immediately upon death, your beneficiaries are not in a position where they must liquidate assets in order to pay the tax.
It’s important to approach estate planning from big picture perspective. At The Greer Agency, we can help you evaluate all of your options and create a plan that provides your family with financial protection after your death.
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