Today, Stephanie and Kevin cover a topic that can often get confusing for many people: the estate and gift tax system. This is different from the income tax system, and both are federal tax systems that everyone needs to be aware of when planning for retirement.

 

At the end of the day, the IRS is getting paid. The only two questions, then, are: Who pays? and When? Our hosts tackle these questions and more.

 

While today’s discussion is a big picture overview of the estate and gift tax system, it will give you a general grasp of the concepts and vocabulary that will make your next meeting with your accountant or estate planning attorney a more insightful and productive one.

 

Key Topics:

“At the end of the day, the IRS is getting paid.” (2:47)

Defining estate taxes. (4:02)

What are “exclusion amounts?” (6:14)

Defining gift taxes. (8:16)

Maximizing how much your beneficiaries inherit. (11:53)

“My parents can only give me $16,000 a year…” Why this isn’t true. (17:30)

“I want to avoid probate, because if I can do that, then I’m not going to pay estate tax…” Why this isn’t true. (22:11)

 

Resources Mentioned:

• Take Back Retirement Episode 31: What the Heck is a Trust, and Why Might I Need One?
• Take Back Retirement Episode 32: True Confessions of Two Financial Planners.

 

If you like what you’ve been hearing, we invite you to subscribe on your favorite platform and leave us a review. Tell us what you love about this episode! Or better yet, tell us what you want to hear more of in the future. [email protected] 

 

You can find the transcript and more information about this episode at www.takebackretirement.com.

 

Follow Stephanie on Twitter, Facebook, YouTube and LinkedIn. 

Follow Kevin on Twitter, Facebook, YouTube and LinkedIn.