Give Yourself Plenty of Time to Establish Your Tax Shelters in 2013
The most popular time of the year to turn over a new leaf is upon us. Some of us have already started the list of things we will do better or differently in the New Year. Planning for the future is without a doubt one of the best ways to ensure success in all areas of life. Financial planning and estate planning are no exception.
One significant benefit of careful planning can be minimizing or eliminating tax burdens. Establishing a trust to transfer assets incrementally prior to one's death can minimize income tax obligations and future estate tax obligations for the grantor if the trust meets certain criteria to have its own tax ID number, or Employee Identification Number (EIN).
Those who waited until the last minute to establish such trusts in 2012 encountered an obstacle to applying online for an EIN. A notice appeared on the IRS.gov website stating the EIN-issuing service would be unavailable beginning approximately 4:00 p.m. EST on Thursday, December 27, 2012 until approximately 6:00 a.m. EST on Wednesday, January 2, 2013, due to end of the year processing.
Don't make the mistake of waiting until the last minute if you need to establish a trust with a separate tax identity. Make it a priority on your New Year's to-do list and schedule an appointment with an experienced estate planning attorney to get an early start.
If you need help with estate planning including making a will or devising a trust, or updating your will or trust, your best course of action is to contact an experienced Bryan, Texas estate planning attorney at the Peterson Law Group. To schedule a consultation, call us today at 979-703-7014 or 936-337-4681.