Proper planning for your future should always take into account the tax implications of life’s important choices since they can materially affect your monetary outcome. In order to properly plan for you and your heirs, often lifetime gifting schedules and trusts are used. These actions and entities not only usually require the involvement of an attorney, but the preparation of tax filings as well. Unfortunately, the improper preparation of these returns can sometimes lead to tax rates over 45% and can possibly destroy all the vital tax planning that had been done.
Even after all that planning is complete and ongoing filings for the gift and trust returns are met, death may mean yet another level of taxation. The estate tax filings can be very complex, and a poorly managed estate can leave you with tax rates over 60%. Add on to that the potential litigation issues that may arise with an improperly filed estate tax return, and it becomes clear how quickly costs can become overwhelming.
The RPB Difference
Without a knowledgeable, experienced tax preparer, gift, trust, and estate taxes can mean more tax than had these tax planning vehicles never been implemented. However, with proper preparation, a well-planned life estate can avoid most taxation. The Certified Public Accountants in our tax department are well versed in gift tax filings as well as all types of trust tax returns.