By Jennifer Ng
Many wealthy people spend their time trying to reduce the estate taxes they owe. Currently, the federal estate tax is imposed on residents who have a taxable estate of more than $2 million. The final estate tax can reach as high as 45 percent. NY Times states, “One simulation from J.P. Morgan Private Bank showed the tax bill on a $123 million estate, even with a basic level of planning, as $51.5 million.” Therefore, estate planning can be very important. But even still with all the planning, there are instances of errors. These mistakes can be a tremendous loss for owners. JP Morgan therefore created a program called Atlas that breaks down a person’s assets and displays it with pie graphs and flow charts. From this, people can detect errors such as designating assets to the wrong heirs and a liquidity deficit. It would be a good idea to reevaluate your estate plans if your estate taxes fall under this category.
Sources:
http://www.nytimes.com/2008/12/31/your-money/estate planning/31wealth.html?pagewanted=1&_r=1
http://estate.findlaw.com/estate-planning/estate-planning-taxes/estate-tax-repealed.html
https://www.oppenheimerfunds.com/investors/ret_plans/estatePlanning.jhtml
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