The American Housing & Economic Mobility Act will lower the estate exemption and raise estate tax rates, which will start at 55%. When current income brackets expire at the end of 2025, which direction will they go? Is your current marginal federal income bracket 32%? How high is your state and city tax, 6%, 10%, 14%? Capital Gains? Sales Tax? Payroll? Medicare? Medicare surcharge? Social Security?
Don't you love paying more than 50% of your income to the government? Its possible with currrent and proposed rates, that after paying the income, estate, payroll, capital gains tax due on $1, that less than 25 cents will be passed on to your beneficiaries. Thanks a lot Grandpa!
The latest episode of TriathlonTV, on our YouTube Channel @TriathlonPartners, discuss the drastic change in the estate exemption sponsored by Senators Warren and Warnock, and supported by VP and Presidenial candidate Harris. The American Housing & Economic Mobility Act will lower the individual estate exemption to $3.5 million from the current level of $14 million. Rates will start at 55%, compared to the current top bracket at 40%. There are two choices either complain to deaf ears, or contact Triathlon Partners. We create an action plan to minimize taxes, maximize cash in hand, and provide for your loved ones and not fund the government's agenda.
Ira discusses outside the box strategies that mitigate higher tax rates. A cash value life insurance policy will grow tax deferred and can produce tax exempt income when designed properly. The death benefit is income and capital gains tax free, and will avoid estate taxes when located outside of your estate. A cash value life insurance policy main goal is to grow your investment tax-deferred and to create tax-exempt cash flow. If your objective is death benefit, then a term insurance is ideal.
Gifts to charity are another way to minimize tax liability. Our clients prioritize giving to CHARITY. Our role is to maximize the impact of their generousity and provide financial stability for their causes. There are several strategies that make donations of all sizes actually larger. Donate appreciated assets or to a donor advised fund, and the full value of the gift is deductible and capital gains taxes are avoided. Donor advised funds allow for immediate deductions on several years of future donations, optimize tax brackets while maintain control of the distribution. This strategy allows aspiring retirees and those with fluctuating income to maximize tax deductions over time.
Contact us at www.triathlonpartners.com if your favorite charity doesn't accept appreciated assets or want to educate the donor base. Let us maximize your donations and create a consistent cash flow.
Our goal is to engage, educate and empower our clients to make confident decisions that best fit their objectives. Triathlon Partners likes S.TU.F.F., Subcribers, Thumbs Up, Friends and Followers, clicking on those social media buttons are greatly appreciated.
Additional resources
Tax-Apocalypse: Take Control of your Legacy
Triathlon TV: Indexed Universal Life Insurance vs Deferred Taxable Investment
Whole Life: The Devil is in the Details
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