It is difficult to quantify how estate or inheritance taxes will specifically impact entrepreneurs.
You are an entrepreneur.
Or perhaps you aspire to become one.
Either way, you know that your estate will likely grow as you accumulate wealth from your efforts.
A recent Forbes article asks “How Do Estate And Inheritance Taxes Affect Entrepreneurs?”
It turns out one of the biggest financial concerns for many entrepreneurs is taxes.
Income taxes are fairly predictable.
They are required like clockwork every year.
But there is no solid answer.
There are too many factors and not enough data.
Could estate taxes influence entrepreneurs?
However, the federal estate tax exemption was recently raised to a threshold of $11.2 million for an individual and double this amount for a couple.
As a result, wealthy entrepreneurs may pass along far more in their estates.
By failing to plan properly, their estates will be taxed at 40 percent.
For some entrepreneurs, estate taxation may kill some of their motivation to build significant wealth if it will only be subject to estate taxes.
This is true if one of your main estate planning goals is to leave bequests to others.
No one wants to work hard just to pass along less to those they love.
Although these factors could affect entrepreneurs, there is no concrete data to support them.
Regardless, it would be prudent for entrepreneurs to work with an experienced estate planning attorney early and often to keep all taxes in check.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Forbes (March 7, 2018) “How Do Estate And Inheritance Taxes Affect Entrepreneurs?”