Right now, if your estate is worth less than roughly $13 million (about $26 million for a married couple), you don’t have to worry about your heirs paying a federal estate tax. But that’s likely to change. The sunset of the current estate and income tax regime is far from certain. Still, given the breadth of the potential changes, it may make sense to plan for the possibilities.

You might associate trusts with the ultrawealthy, or with young adults who don’t have to work. But trusts have benefits for a far wider swath of the socioeconomic spectrum — a swath that likely includes you.

“Not knowing how trusts work or what they’re used for, other than passing down assets to children, can keep people from setting one up,” said Michele Collins, director of advanced sales at MassMutual’s Boston office. “So can being afraid of the cost as well as being uncomfortable planning for death, which is when trust discussions often come up.”

Here’s a rundown of the most common types of trusts and their purpose.

Whole life insurance offers an income tax-free death benefit as well as deferred cash value growth.

There’s one question many small business owners ask themselves everyday: “What is the true value of my business?”

It’s an important question because, whether you realize it or not, the value of your business will have a big impact on both personal and professional aspects of your life. So, knowing the answer is vitally important.

The Supreme Court recently ruled that life insurance proceeds received by a corporation to cover the repurchase of the deceased shareholder’s stock interest must be included in the value of the corporation for federal estate tax purposes. Those proceeds are not offset by the corporation’s obligation to repurchase the deceased shareholder’s stock.

Issues arise when business owners don’t face the fact that one day they won’t be around to run their business. While many owners have their children’s best interests in mind, their intentions and visions don’t always necessarily align with the reality as seen through the next generation’s eyes. A lot of it has to do with transparency, reasonableness, communication, and a willingness to compromise for the future success of the business and the continued harmony in the family.

This article will illustrate how standard deduction and marginal tax bracket changes might affect your income, tell you how to maximize your retirement savings in 2024 and show how some proactive tax planning can help you save more money.

A Section 162 executive bonus plan is a way to attract, reward, and retain key employees using life insurance.