By Angelo Orlando
Estate planning can be a very daunting and scary thing to do. But with a sound plan you can make this scary task manageable. A good place to start is to make a list of what you own and decide where these possessions are going and to whom (Keating). This lets everyone in your family know what they can expect from your estate. Next know some tax ramifications that can be associated with your estate. For example, you can give assets to your heirs tax free as long as they do not exceed 3.5 million (Keating). Another tax ramification dealing with your estate and especially your spouse is the “I love you will,” which says you can give an unlimited amount of your estate to your spouse without tax consequences. But, try and avoid this because this will defer the taxes to until your spouse dies (Keating). This is not a very effective planning tool. A third tax ramification to be aware about when planning your estate is the generation skipping transfer tax, which can be a very expensive tax. If you are planning in your estate to bequeath assets to your grandchildren you should know. A way to avoid this is to pay for such things as college room and board which can be done with out tax consequences (Bischoff). Understanding and becoming aware of these tax ramifications when preparing your estate can be very helpful and save you tons of money in the process.
http://www.smartmoney.com/personal-finance/estate-planning/the-grandparent-tax-12635/
http://www.smartmoney.com/personal-finance/estate-planning/estate-planning-without-anxiety/
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