Estate Planning Business to Take Care Of Before 2011

1:04 pm Uncategorized

As uncertainty continues its grip on the estate planning landscape, a thoughtful post at Forbes.com gives some practical advice on some business you can take care of before the end of the year to lessen the sting of anticipated tax increases in 2011:

Take income now. Deferring income used to be a given, but since tax rates will likely increase after Jan. 1, 2011, many tax experts are suggesting you receive bonuses and other income before the end of 2010 to save on taxes.

Take capital gains now.  Taxes on capital gains are expected to rise five percent next year, so you may want to sell appreciated real estate or stock this year.

Think about a dynasty trust. A dynasty trust preserves principal while delaying the payment of estate taxes for future generations, giving them more time to plan and helping preserve your principal now and protecting it against creditors.

Think about a charitable remainder trust. By contributing appreciated assets to a charitable remainder trust this year, you avoid capital gains tax and still provide an income stream for you and your beneficiaries.

You can read about more 2010 tax saving strategies here.

Let our Costa Mesa law offices help you get started by contacting us today.

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