If I am worth less than two million dollars is there any need to do tax planning?

    Published: 06-16-2009
    Views: 9,147
    Estate Expert William Conway discusses the need to do tax planning if your worth less than two million dollars.

    Host: If I am worth less than two million dollars, is there any need to do tax planning?

    William Conway: Absolutely, the reason we do tax planning is first of all we don t really know or understand what the tax rules would be in the years to come. We also don t know what value the assets that the couple might have might grow to in years to come. I have many cases where people come in to my office where they have assets that have grown over the course of 10, 15, 20 years to a sum far and excessive what they might have imagined. So, if one of the couple passes away, when their assets are less than two million and the assets subsequently exceed two million by many, many fold, then the failure to use the coupon when the first spouse died is a failure that can not be solved. That failure is one that could only be used at the date of death of the first spouse. So, if for example if the husband would have passed away with only a million dollars between the husband and the wife, but his half million, his half of the assets that the couple have together, will put into a trust for reasons that are unique to that family, the surviving spouse never needed to go in to use any of those assets for her health or education or support. She had other resources, other income coming in and those moneys continue to simply grow within the trust. If those assets grew from half a million to two million to eight million to ten million and then the surviving spouse passed away, all the assets in the first spouse s trust that originally have been setup for the benefit of the surviving spouse and originally and now subsequently, will go on to the children or other beneficiaries that they have allocated the resources will go without any taxation. The failure to use the coupon from day one was a failure that could not be remedied later in life.