The article discusses steps that heirs can take to figure out how much money is owed to the state or IRS. The first recommendation is to take inventory. Heirs must make sure to determine what the estate is truly worth. The second recommendation is to check for qualified money. This includes money from 401(k)s and IRAs. Taking money out of these accounts can have tax consequences. The third recommendation is to minimize the damage. The article lists multiple ways to shield the newly acquired assets. This includes "multigenerational planning" and transferring life insurance into an irrevocable trust. The last recommnedation is to make estate planning easier for your heirs. Most tax planning is being done too late.
See Jason Notte, "How to Ensure Your Inheritance at Tax Time," The Street, Jan. 9, 2012.
Posted by William Alan Nelson II, Associate Editor, Wealth Strategies Journal
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