Taxes For Dummies

Chapter 27

Estate Planning

IN THIS CHAPTER

Arriving at the ultimate and final insult — taxes for dying?!?

Reviewing strategies for reducing estate taxes

Using trusts, wills, and more trusts

Finding help if you need it

Among the dreariest of tax and financial topics is the issue of what happens to your money when you die. Depending on how your finances are structured and when you pass on, you (actually, your estate) may get stuck paying estate taxes when you die. These taxes may be assessed at the federal level but also by some states. (Other states levy an inheritance tax.)

Unfortunately, you can’t predict when the grim reaper will pay a visit. That doesn’t mean, however, that we all need to participate in complicated estate planning. On the contrary, if your assets are modest, a few simple moves may be all you need.

Estate planning takes time and money, which are precious commodities for most people. Whether spending your time and money on estate planning is worthwhile depends on your personal and financial circumstances, both now and in the near future.

Figuring Whether You ...