Ask Terry Questions Estate plan

Estate plan

By Terry Savage on March 13, 2020 | Wild Card

I plan to bequeath about $500,000 each to my 2 sons when i pass on….. what would be my best taxable strategy? Should i put into a trust? Would there be large inheritance taxes?

Terry Says

There is no inheritance tax. And there is no Federal estate tax unless your total estate is over $11.2 million! But you should have a lawyer who specializes in estate planning draft a will — or even better a revocable living trust — containing your instructions.
There are a number of different issues, including how the money is titled BEFORE you die. Are your children adults, because you can’t leave that kind of money to minors? Are they married? Equally needy? Have you considered gifting money now to a 529 college savings plan for your grandchildren?

I’d love for you to read the chapter on estate planning in the latest edition of The Savage Truth on Money, available on or through my website. It’s too complicated to go into here, but with that amount of money you definitely need an estate planning attorney in your state of residence to set this up for you. This is not a do-it-yourself project!



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