Hurdling A Round Of Taxation Taxes are an interesting thing because they can spawn conflicting emotions. Money is hard earned and nobody wants to part with a significant portion their earnings and give them to the tax man. However, the vast majority of thinking people recognize the need to fund certain foundational elements of society. In the end most Americans are not opposed to paying their fair share of taxes. What they don't want to do is pay more than their share or be faced with multiple rounds of taxation on the same resources. This is why a lot of people do not particularly care for the federal estate tax. The estate tax is imposed on the after-tax resources that you happen to have in your possession at the time of your death, so it is inherently an instance of double taxation. And, if your children were to leave the same resources to their children, they could be taxed yet again. One way to avoid a round of taxation would be to create a generation-skipping trust. With these trusts you name your grandchildren as the beneficiaries rather than your children. Your children can however benefit from the assets that you placed in the trust. After they die, your grandchildren assume ownership of the trust. They must pay the generation- skipping transfer tax, but two generations benefited from the trust while being taxed just once. If you are interested in learning more about generation-skipping trusts as you explore tax efficiency strategies, simply take a moment to arrange for a consultation with an experienced estate planning lawyer. Experienced estate planning attorneys Mobile AL of the Ryan Hicks Cumpton & Cumpton LLP offers estate planning and business planning resources to residents of Mobile AL. To learn more about these free resources, please visit http://www.epattorneys.com today.
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