Hurdling A Round Of Taxation

							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.