Tax tips for estate planning and inheritances

Taxes: Estates & Inheritances

Roth IRA May Be Key to Heirs' Tax Savings


"I have a considerable amount of money in 401(k) investments and stock. What is the best way to pass these assets on to my children after I'm deceased without them having to pay a lot of inheritance or estate taxes?"

Do I Owe Tax on Home Transferred to Me?


There is no current federal tax problem, but you may end up paying taxes when you sell the home your mother transferred to you. This is because when someone, such as your mother, is alive and transfers property to another person, the "basis" of the property also transfers to the new owner.

How to Handle Taxes on Assets in a Revocable Living Trust


Revocable living trusts are effective in transferring assets without going through the lengthy and costly process of probate. Anyone considering setting up a trust should use the services of a good estate and trust attorney to prepare this very important document.

Do I Pay Taxes on an Inheritance?


"My father recently passed away. He has no living will. He has a savings account with less than $20,000 in it. I am his sole living heir. Do I pay taxes on the inheritance?"

Shielding Your Assets from Estate Taxes


Reduced home values and low interest rates work in your favor when it comes to two strategies that could save your heirs a bundle on estate taxes. You can use two types of trusts to shield your home or investment portfolio from estate taxes.

How to Avoid Estate Taxes with Trusts


You can argue with Mitt Romney's politics, but his personal estate plan is ironclad. Romney removes assets from his estate through the use of irrevocable trusts that provide him with income while leaving most of his wealth and its appreciation to heirs tax-free after his and his wife's deaths.

How to Avoid Inheritance Taxes on Home?


"I recently inherited my mother's house when she died this year. I'd lived in it my entire life, though I was still responsible for paying inheritance taxes. I want the house to go to my nephew when I die. What is the best way to do that to help him financially? Can I sell it to him for a small amount, or can I list him as co-owner?"

Paying Taxes on Inherited Savings Bond Interest


"My grandparents are now deceased. They had a number of savings bonds. How is the savings bond interest reported? The original purchase price was approximately $33,000. Interest accumulated to date is approximately $80,000. The six heirs will divide the bonds. Is the interest accumulated from the savings bonds until the date of death used on the last personal tax Form 1040? Or is all the interest received from them placed on the final estate taxes?"

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Whitney Houston's Estate

Kahler Financial

Since the death of singer Whitney Houston, I've seen several articles from attorneys and financial advisors about the errors in her estate planning. They have summarized three areas where it was badly flawed. Unfortunately, this lack of skilled estate planning isn't all that rare among wealthy people. Here are a few of the money beliefs that may be behind inadequate estate planning.

8 Ways to Go Wrong with an Inherited IRA


An inherited individual retirement account lies at the tricky three-way intersection of estate planning, financial planning and tax planning. With do-overs granted exclusively by Internal Revenue Service fiat, one wrong decision can lead to expensive consequences.

Trusts for Tax-Efficient Estate Planning


Do you have an asset that you believe will increase significantly in value? Rather than eventually leave it to your heirs, estate planner Bill Kirchick suggests you put it in a trust.

How to Bequeath Your Retirement Savings


Choosing your retirement plan beneficiary is one of the most far-reaching financial decisions you can make, yet most people give it very little thought. But if you want control over where the retirement savings go when you're gone and you want to protect your heirs from unfavorable tax consequences, there is actually plenty to think about.

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