The Estate Planner - November/December 2012


In This Issue;

- Can’t afford estate taxes? Get an intrafamily loan

- Get ready for the new 3.8% tax on investment income

- Determining when to begin receiving Social Security

- Estate Planning Red Flag: You haven’t prepared a health care directive

- Excerpt from Can't afford estate taxes?

If an estate consists primarily of closely held business interests, real estate or other illiquid assets, it may not have the liquidity it needs to pay estate taxes and other expenses. Life insurance is an effective tool for covering these expenses and avoiding a forced sale or liquidation.

But if insurance is unavailable or insufficient, another option is to borrow the necessary funds. Borrowing may also provide a significant benefit: If the loan is structured properly, the estate can deduct the full amount of interest upfront, reducing the size of the estate and, therefore, its estate tax liability. Interest may be deductible even if the funds are borrowed from a related party, such as a family-controlled trust or corporation.

Please see full newsletter below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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