Page 23 - 2017 2nd Qtr Newsletter_TAA_FINAL

TAA NEWS

A WORlD WIthOut thE EstAtE tAX By: Jacqueline N. Davie

Recent proposals by the Trump • protects inherited assets.
administration include the repeal If you could put a force field around
of the Estate tax, often referred to the assets you are passing to your
as the “death tax”. As auctioneers, children wouldn’t you? Most
many TAA members have probably individuals answer yes but often
seen operations or families having during a review of their documents
to sell assets to pay taxes. Does the we find they are passing assets
proposed repeal mean individuals outright to children or grandchildren.
and families no longer need to worry Techniques exist that can protect
about Estate Planning? No, because inherited assets from creditors, Jacqueline N. Davie is a registered
a good estate plan goes far beyond lawsuits or the claims of divorcing representatives and investment advisor
reducing or eliminating estate taxes. spouses. representative of Lincoln Financial
So what else can an estate plan Advisors Corp., a broker/dealer
provide? • prevent financial mismanagement. (member SIPC) and registered
Without planning, it’s possible that investment advisor 1330 Post Oak
• Clearly express who you want large sums of assets could pass to Blvd. #2800, Houston, TX 713-552-7966
to receive your assets. Without children that are not ready for the offering insurance through Lincoln
a Will, you are known to die “intestate”. responsibility of management. We affiliates and other fine companies.
Each state has its own intestate laws ask clients to think back to how Lincoln Financial Advisors Corp. and
that outline how assets will pass. they would have handled a large its representatives do not provide legal
For example, if you die intestate in sum of money when they were 18 or tax advice. You may want to
Oklahoma and have a spouse, no or 25. Many shudder at the bad consult a legal or tax advisor
children but living parents, your decisions they would have made. regarding any legal or tax information
surviving spouse inherits all property as it relates to your personal
acquired by joint effort during your • meets income and principal circumstances.
marriage plus 1/3 of the balance. distribution objectives. Should CRN-1801125-051817
If you have a spouse and a child the trustee have access to only
from a previous marriage, your income or income and
spouse inherits ½ of all property principal? Is it mandatory
acquired by joint effort during your that income be distributed?
marriage and splits the balance How does this effect
with your decedents. (NOLO.com) taxation? How this is
dealt with in any Trusts
• Builds flexibility for life changing can effect cash flow
events. Actor Heath Ledger, and taxes and should
star of the movie Dark Knight, be reviewed carefully.
died with a $20m estate and an
old Will. The Will left his estate to These and other consid-
his parents and sisters effectively erations are essential for
disinheriting his daughter who was a comprehensive estate
born after the Will was drafted. A plan. Focusing on estate
good plan builds in flexibility for taxes leads to losing focus
future events such as children, on other equally
grandchildren, death of a child or important decisions
grandchild and death of a spouse. that affect not those
living, but those left
• Details who you want to receive behind. See my ad in
your assets and how. Will everyone the newsletter and
receive a proportion of each asset contact me today
or are there some assets that for a complimentary
will a greater portion will go to one review of your estate
child? This is especially relevant documents.
for individuals who have a family
business where only one child is
active. Should that child be rewarded
for their contributions or should
they share equally with siblings
in the business after death?

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