A bill has been introduced to the California Senate (SB378) to introduce a 40% state estate tax. Unlike the federal estate tax which has a $11.4mn exemption, this proposed state tax would only have a $3.5mn exemption.
It may be tempting to believe the tax cuts and jobs act made estate tax planning less relevant, but this proposal highlights tax uncertainty risk, and solidifies the need for proficient financial and estate planning.
Roth conversions may help reduce your tax uncertainty risk in two ways. First, by paying income taxes today, they reduce an investor's exposure to future, and potentially higher income tax rates. Second, the Roth conversion reduces the size of the estate which in turn diminishes the estate's potential exposure to estate taxes.
Contact us today so we can help evaluate whether a Roth conversion may be appropriate for your retirement and estate planning goals.
This commentary reflects the personal opinions, viewpoints and analyses of the Integrity Wealth Partners, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Integrity Wealth Partners, LLC or performance returns of any Integrity Wealth Partners, LLC client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Integrity Wealth Partners, LLC manages its clients' accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
Published on:
05/10/2019
Category:
Financial Plan
Taxes
Tag(s):
#Estate Planning
#Estate Tax Planning
#income tax rates
#investor exposure
#Paying income taxes
#Proficient financial
#Roth conversions
#SB378
