More advanced estate planning is necessary if your assets total more than $1 million, or whatever the current applicable exclusion amount may be. However, $1 million is a good baseline because it is the Minnesota exclusion amount.
Many people underestimate the size of their estates. Your estate includes all of your assets:
401k & IRA Retirement accounts
An effective strategy now can prevent your beneficiaries from being forced to liquidate assets, potentially at a loss. Estate tax liability must usually be paid to the state and federal governments within nine months of death.
You may benefit from consulting a variety of professionals to determine and implement your best options. Your estate planning team could include: a Frundt and Johnson attorney, an accountant, and a financial professional.
Estate planning may involve strategies to:
Plan for and cover estate taxes and other expenses
Reduce the size of your taxable estate
Achieve a combination of both
For example, one strategy may involve taking required minimum distributions from an IRA you don’t need for retirement and structuring with the intent to keep it intact longer. By doing this, you may extend the accumulation period and defer taxes for the benefit of your children and grandchildren. Another common way to reduce the size of your taxable estate is through the use of trusts.
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