Recently in Estate Tax Category

A major part of estate planning is developing an understanding of your potential tax liability and minimizing this amount.

The federal estate tax, which is imposed on large estates, can be reduced through various estate planning techniques. The following is a list of five methods you may want to think about as ways to reduce your estate taxes:

Many people think that a will is the only estate planning document out there. When they think if estate planning, they assume that a will is all they need.

We've discussed the variety of documents in an estate plan on this blog many times before. While a will is one of the more important estate planning documents, it's not the only one.

We've gone over some of the more common estate planning documents, tools and terms, such as those you're likely to see in a basic estate plan. Now, let's take the time to talk about some of the more obscure ones -- the kinds of terms you're likely to come across in more complex estate plans.

The new year has rolled in, and the nation has dodged the fiscal cliff.

In a series of last-minute pow-wows, lawmakers finally came together and crafted a solution to avoid the impending fiscal cliff.

For estate planners out there, don't start looking for your plates to get full. The estate tax issues in the fiscal cliff have changed, but not as dramatically as many had hoped.

It’s not every day that you see billionaires asking for a raise in taxes which would essentially affect their “wealth category,” namely, the rich.

But yes, two prominent billionaires are doing just that, writes Bloomberg News. You’ve likely heard the name Warren Buffett. And if you watch Glen Beck, then you’ve likely also heard the name George Soros.

Both men are billionaires and both are calling for a rise in the estate tax.

The year-end is coming up and with all the talk about the fiscal cliff, people might be asking what their year-end tax moves should be. And if their estate plan factors into their year-end planning, they might also be asking what their year-end estate planning moves should be.

There’s been extensive talk on this blog about the year-end tax debacle with the estate tax going back to a $1 million exemption amount.

With December 31 only weeks away, there’s still no accord in the legislature and while the fiscal cliff is an issue that affects many different taxes, the estate tax proved to be a contentious aspect of that debate.

We’ve been hearing quite a bit about the “fiscal cliff.” But what does it mean and how does it impact your end of year estate planning?

The fiscal cliff is a phrase used to describe the end-of-2012 tax issues that the United States will be facing. Here’s the story: As of December 31, 2012, many tax cuts and tax breaks will expire. Some call it a “disaster waiting to happen.” According to CNN, it includes $7 trillion worth of tax increases and spending cuts over the course of a decade.

Earlier, we talked about the estate of Huguette Clark and the Santa Barbara property that was designated to her private foundation.

The law of charitable giving and nonprofits isn't always crystal-clear to the layman. The terms public charity and private foundation often get confused. People assume, when they hear the word "foundation" that it's the same thing as a charity.

Let’s talk today about the Qualified Terminal Interest Property Trust, also known as the QTIP trust. It’s a great tool to avoid paying estate tax.

The QTIP is very similar to a bypass trust, but with some tiny differences. It’s a trust that goes to your spouse when you pass away, naming your spouse as beneficiary. The spouse has the right to certain income from the trust for his or her life. Upon death, the assets in the trust go to the beneficiaries designated in the trust.

This trust is for married couples. And only a U.S. citizen spouse can be named as a beneficiary of the trust.

In our earlier post, we talked about why some DIY wills (i.e. Do-it-Yourself) might pose problems, particularly if one doesn't understand estate taxation.

The thing is that many people assume that estate tax is for the rich. What many don't understand is that estate tax is one of those areas of law that fluctuates and that it's very possible that the amount of estate tax exemption in a year of one's death could be lower than anticipated.

Additionally, many people think that if they get an asset out of their probated estate, it won't be taxed. So they create revocable living trusts, thinking that the assets in that trust won't be taxed. That's simply not true.

Translation: If you've got assets that total around the million dollar mark, you might want to think about proper tax planning .

How does Mitt Romney escape paying higher taxes?

We've been hearing a lot lately about how Mitt Romney, the Republican presidential candidate, only pays about 13% in federal income taxes.

Of course, we're in the midst of a political campaign so the accuracy of these allegations is the subject of intense debate. But let's take a look at his wealth planning to get a better picture on how (and if) he avoids paying higher taxes.

For starters, the Romneys give a considerable amount to charity. According to their 2010 tax return, the Romneys reduced their taxable income by giving $3 million to charity, reports Forbes.