The goal of estate planning is to pass on to the next generations the maximum amount of your hard-earned money, by keeping the amount paid to the US Government in the form of taxes at a minimum, and still providing for a comfortable and secure retirement. If you think you might have an estate tax problem (which could occur with an estate valued at $5,340,000), you should certainly seek professional help. Estate taxation can be extremely complicated, with many traps that can become very expensive.
The longer you wait before seeking professional advice, the more difficult it will be to avoid estate taxes. Started early enough, many quite substantial estates can be transferred tax-free using the annual gift exclusion of $14,000 ($28,000 if married) per recipient, particularly if there are a number of children and grandchildren alive. Of course, in many instances it would be inadvisable to give money outright, particularly to younger children and grandchildren, so in these instances it is important to give the money indirectly through trusts. Trusts can be set up in a nearly infinite number of ways to achieve the exact goals that you want, including access to the income for as long as you live.
Whether you need help filing a 1041, 706 or some details about the steps and information needed to file those tax returns; LG&H wants to help you. Do you need to establish an EIN and determine a tax year-end that will be tax beneficial? We have done that before. Any taxable income or at just $600 of gross income and you will need to file Form 1041. For help in determining what gets reported on the 1041 vs. the 1040, whether income is for the trust or beneficiary let LG&H assist in that determination. Let us make sure the new 2013 additional Medicare tax gets included on the return. The tax environment is always changing and LG&H wants to ensure that you are not left with an unintended tax bill. If we work together and plan ahead the tax effect of your plans and intentions can be minimized.