A respected presence in the financial services sector, Todd Mardis is the founder and president of Capital Preservation Services in Flowood, Mississippi. For over two decades, Todd Mardis has served a wide array of business enterprises, helping them with marketing as well as adopting effective tax dtrategies. He also has experience with estate planning.
The main reason why individuals opt for estate planning is to protect the assets to be left to their loved ones. This allows the transfer of assets to heirs within the provisions of the law but with an ultimate aim to reduce tax burdens for them. To benefit from reduced estate and inheritance taxes, you should first know whether your estate will be taxed. Contrary to what some people believe, estate taxes aren’t a problem only for the rich, but also affect middle-income families who can find themselves faced with huge bills.
Some of the assets that meet the threshold of taxation include bank accounts, businesses, life insurance and property. However, significant estate taxes are associated with real estate investments and businesses, especially if you own properties in states such as California, known for high real estate prices.
If you’re a business owner, the value of your enterprise is also included in your estate value. This means you need to be careful when valuing your business to avoid your heirs having to pay a big tax bill in the event the value of a business turns out higher than expected. Families that inherit farms may also find themselves in this situation when land value is found to be much higher than its initial valuation.
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