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INCOME TAX BASICS FOR ESTATE PLANNERS Melissa J. Willms DAVIS & WILLMS, PLLC 3555 Timmons Lane, Suite 1250 Houston, Texas 77027 (281) 786-4500 melissa daviswillms.com AMERICAN BAR ASSOCIATION.

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Answer: A basic revocable living trust does not reduce estate taxes by one red cent; its only purpose is to keep your property out of probate court after you die. ... That way, she does not legally own the property, and it won't be subject to estate tax at her death.

Anyone who wants their assets to be transferred to one or more surviving loved ones after they pass away should consider establishing a formal estate plan. This important set of legal documents can make it easier for your family to ensure that your wishes and needs are met if you're unable to speak for yourself.

Put assets into a trust. ... Put assets into a trust and still get the income. ... Take out life insurance. ... Make gifts out of excess income. ... Give away assets that are free from Capital Gains Tax. ... Leave something to charity. ... Spend it!

Make a will. ... Make sure you keep below the inheritance tax threshold. ... Give your assets away. ... Put assets into a trust. ... Put assets into a trust and still get the income. ... Take out life insurance. ... Make gifts out of excess income. ... Give away assets that are free from Capital Gains Tax.

Make a will. ... Consider a trust. ... Make health care directives. ... Make a financial power of attorney. ... Protect your children's property. ... File beneficiary forms. ... Consider life insurance. ... Understand estate taxes.

To many, will planning and estate planning are one and the same. ... Both provide your relatives with instructions about how your property should be handled after your death, but estate planning goes even further to outline your wishes regarding your health, finances, and more, even while you're living.

2. Focus on flexibility. Many of the changes enacted by the Tax Cuts and Jobs Act, including the higher federal estate tax exclusion, are currently set to expire at the end of 2025. As a result, the federal estate tax exclusion amount will be reduced back to $5 million (inflation indexed) after 2025.

There are four main elements of an estate plan; these include a will, a living will and healthcare power of attorney, a financial power of attorney, and a trust.

Many people review their estate plan at a regular frequency, often when they review their whole financial plan. This can be done annually, semi-annually, or quarterly; for estate planning specifically, the general recommendation is at least every three to five years or when there is a life event.

People at every age should put together an estate plan that fits their needs from something very simple for a 30 year old to a fully funded trust plan for a 60 year old. Here are the typical estate planning documents and issues to consider by age.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232