How can you save on estate taxes?
Now I would like to talk to you about what is an estate and how it relates to the estate tax. An estate is everything that you own on the date of your death. The fair market value of that asset, your stocks, whatever it is worth on the date of your death, or 6 months after, there are some very specific rules that are a little bit complicated, but basically, it is to determine the value, the fair market value, of all of your assets so they become taxable. And the IRS, your lawyers, your accountant, your appraiser, are all haggling with each other about how much everything is worth, so that the government gets a bigger chunk. They’ll say your estate is huge, and you’ll argue that it’s not that much. The more your estate is worth the more the US government gets because of the estate tax.
What is the estate tax?
The estate tax is a very major item. The estate tax is the only voluntary tax within the IRS code. Without proper estate planning, the tax forces sales of your estate at the most inopportune time. You have heard horror stories where people have had to sell their farms in order to pay the IRS their dues. All of this can be avoided with an Ultra Trust®, the rock solid irrevocable trust asset protection plan without going offshore. With the Ultra Trust® you have no assets on the date of your death. In other words, you have repositioned your assets from yourself, in your name, to the Ultra Trust®. You have just protected your assets and estate from the estate tax, from probate and have deferred your capital gains tax too.
The Ultra Trust® irrevocable trust asset protection can save your assets and estate
However, if you have trouble with ownership, you have ownership issues. In other words, you must own things, you must own the land, you must own the building, you must own the car, you must own all your assets. If you have these kinds of issues and can’t separate yourself from the asset, then the UltraTrust® irrevocable trust is not for you. If the Ultratrust® irrevocable trust is not for you, then somebody will have to pay the taxes (the estate taxes); somebody will have to support all these lawyers, accountants, appraisers and so forth, within the legal system. And again, if you have more assets in different states, each state will have the whole process of taxation.
Estate planning with the Ultra Trust® irrevocable trust, you can avoid all of these complications.
Continue to read part 9 of 11 on the Ultra Trust® benefits as one of the best irrevocable trust plans for asset protection here: Medicaid Spend Down Rules
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- Part 1 – Estate Street Partners
- Part 2 – What is the Ultra Trust®?
- Part 3 – What is a Trust?
- Part 4 – Asset Protection Plan
- Part 5 – Asset Protection Eligible Assets
- Part 6 – Irrevocable Trust Tax Benefits
- Part 7 – What is Probate?
- Part 8 – Medicaid Spend Down Rules
- Part 9 – What is the Ultra Trust®?
- Part 10 – Irrevocable Trust Benefits
Rocco Beatrice, CPA, MST, MBA, Managing Director, Estate Street Partners, LLC.
Mr. Beatrice is an asset protection award winning trust and estate planning expert.
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