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Home>>Expertise>>Financial
& Tax Planning
Tax and Estate Planning Common
Issues As CPAs and financial professionals we are asked questions like the following almost daily: Which retirement plan will get me the most tax savings? Should I participate in my company’s fringe benefit plan and how does it save me taxes? What are the best ways to utilize education credit/deduction and 529 plan for my family? Why proper asset allocation and staying in the market work out much better than chasing hot sectors and market timing in long run? How can I avoid the "kiddie tax"? What's the proper coverage in disability and life insurance for me and my family? Trust and will, how do they work for me and my loved ones? Do I need both and why? All in all, the ultimate question seems to be that how can you protect and grow
your hard-earned money, prepare for
the future, guard against the unpredictable, and share with Uncle Sam the least
amount that tax law allows? Solutions Our short answer: Plan ahead and plan well. Why? Let's look at two examples. By fully taking advantage of 529 plan, a couple in Missouri with two young children can save almost $1,000 each year in state income taxes during the period of saving for children's education. The family actually saves much more tax dollars as the earnings inside a 529 plan are both federal and state tax free. What will make this happen? Plan early and be sure to send the children to college. Another example. Assume a couple with a $3.5 million taxable estate in 2004 only had a simple will, the federal estate tax would take away about $945,000 (that's well over one-quarter of the estate). But if they set up an exemption trust, Uncle Sam would only get about $225,000 (that's less than 7% of the estate). The planning tool results in a whopping $720,00 savings in taxes for the family! Proactive planning is the key. And we stand by to assist you. |
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