Welcome to Tactical Thursday!
Losing a loved one is hard. Dealing with estate issues, finalizing burial plans and distributing assets and possessions just adds to an already exhausting and emotional situation. What if you or those you love could ensure that this process could be more streamlined and simplified?
Our first discussion point: Understanding tax implications of inherited wealth.
Depending on what is inherited there is a corresponding tax consequence to the estate and the inheritors. We’ll spend the first couple of weeks discussing the different types of tax buckets, tax now, tax later and tax never and what falls in each of those buckets. For now, here is an overview of each one.
Tax Now: Ongoing taxes paid on interest accrued and gains inside of the account.
Tax Later: Deferred taxes on principal and growth inside the account.
Tax Never: No taxes paid as principal has already been taxed and growth is tax free.
It is important to consult a financial professional and a tax professional to understand the full implications of each bucket.
Having a legacy plan, whether you’re planning on passing money on or not can ensure your wealth passes as efficiently as possible. If you have questions we can help!
Thrivent advisors are not tax professionals. Please see Thrivent.com/disclosures for important social media disclosures.
