Terry Register discusses highlights of tax planning for future generations
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-terry-register-ceo-of-capsur-tax-and-estate-planning-tax-planning-for-future-generations/
Terry Register, CEO of Capsur Tax and Estate Planning. Terry dives into the crucial topic of legacy planning and the importance of preparing for future generations. Terry emphasizes that while many focus on saving for retirement, it’s equally vital to ensure that what remains after one’s passing is secured for heirs. The discussion highlights how tax planning plays a pivotal role in this process. Terry addresses the discomfort many feel when discussing death and inheritance, and offers insights on how to approach these conversations effectively. Tune in to learn how to make your legacy a priority and ensure your family’s financial future.
Legacy planning is a vital component of financial management that ensures your heirs are not burdened with unexpected tax liabilities and can fully benefit from the assets you leave behind. In a recent podcast episode featuring Terry Register, CEO of Capsur Tax and Estate Planning, several key considerations were discussed that can significantly impact your family’s financial future.
A primary concern in legacy planning is the potential tax burden that heirs may face when inheriting assets. Terry emphasizes that many individuals are unaware of the tax implications associated with inheritance. For instance, when someone passes away, the government often requires heirs to pay taxes on the inherited assets within a specific timeframe—typically just nine months. This can lead to unexpected financial strain, especially if heirs are unprepared for the tax bill.
To mitigate this risk, proactive tax planning is essential. This includes understanding how different assets are titled and the potential tax consequences of transferring those assets. For example, if a parent intends to pass down a house, it is crucial to consider how that property is titled and its current market value. Without proper planning, heirs may find themselves needing to sell the property to cover tax liabilities, which can diminish the legacy intended for them.
Terry also highlights the importance of asset protection in legacy planning. Many individuals may not realize that certain assets can be vulnerable to government claims, particularly in the context of long-term care or nursing home expenses. For instance, if one spouse passes away and the surviving spouse needs to enter a nursing home, the government may require the surviving spouse to “spend down” their assets before qualifying for assistance. This scenario underscores the need for strategic planning to protect family assets from being depleted by unforeseen expenses.
Engaging with an elder care attorney can provide valuable insights into how to structure your assets to safeguard them for future generations. By understanding the legal landscape and potential pitfalls, you can create a plan that ensures your heirs receive the maximum benefit from your estate.
Another critical aspect of legacy planning discussed in the episode is the use of life insurance policies that offer living benefits. Many people view life insurance solely as a death benefit, but modern policies can provide significant advantages while the policyholder is still alive. For example, certain life insurance products allow for tax-free cash growth and access to funds for long-term care needs without requiring a separate long-term care policy.
Terry points out that many individuals may not realize the full potential of their life insurance policies. By reviewing and possibly restructuring these policies, you can ensure that they not only provide a death benefit but also serve as a financial resource during your lifetime. This can help alleviate the financial burden on your heirs and ensure that they are not left with unexpected costs.
In addition to protecting your family’s financial future, legacy planning can also include charitable giving strategies. Establishing donor-advised funds or charitable remainder trusts can provide tax benefits while allowing you to support causes that matter to you. These strategies can help reduce the taxable estate and ensure that your philanthropic goals are met, all while benefiting your heirs.
Terry shared: “From growth-stage companies to legacy family enterprises, we bring proven strategies that align business planning with personal financial goals—because we understand that for most owners, business is personal.”
For instance, as Terry illustrates with a case study, a couple with significant stock holdings can structure their estate in a way that maximizes benefits for both their children and their chosen charities. By strategically donating appreciated assets, they can avoid capital gains taxes and create a lasting impact on their community.
