I have monies in investments, annuities with pod/tod, and some life insurance. I need to know how my heirs will be taxed on this money. I have read where annuities have a very steep death tax and to put it in life insurance for it to be tax free. I know these will bypass a will, but I want the least amount of tax burden possible.
This is an excellent question but truly outside the scope of generalized helpful advice. Try to contact a local tax attorney or estate attorney and set up an appointment.
Attorney answers to questions are for general purposes only and do not establish an attorney-client relationship. You must seek a consultation.
You really need a good tax and estate attorney. Payable On death accounts can be tricky. Usually, they are included in the Estate. Annuities are varied and have different tax treatment. Your attorney will work with your insurance expert to devise a good plan.
I hope this helps!
PS - I have changed this to the Estate Planning topic.
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There is more that a tax lawyer would need to know in order to answer your questions. You may locate a tax lawyer using the Find a Lawyer function at the top of this screen putting in Scott County and other Tn counties such as Campbell, Anderson and Knox. Make a listing of your assets by item and show any named beneficiaries and values [projected date of death values for annuities, life insurance and retirement plans]. The inheritance tax in Tn is subject to a $5,000,000 exemption for estates of people dying in 2015, and there is no inheritance tax on estates of people dying after 2015. However, there may be a federal estate tax on estates substantially more than $5,000,000 regarding deaths in 2015 or later. There are also income tax and non-tax considerations when planning the disposition of the estate so your lawyer should be knowledgeable about both taxes and estate planning.
These comments do not constitute legal advice. They are general comments on the circumstances presented, and may not be applicable to your situation. For legal advice on which you may rely consult your own lawyer.
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