Don't Let Your Client's Estate Taxes Get The Best Of Them
Everyone
knows the only two things in life you can be sure of are death and
taxes. However, with today's new estate tax laws, even death and
taxes require thought and preparation. Estate planning experts agree
that careful review and consideration of estate tax rules and regulations
is more important than ever.
Congress
and the Bush administration passed the "Economic Growth and Tax Reconciliation
Act of 2001" in June, 2001. The new law takes effect over the next
nine years, culminating with the repeal of the estate tax for taxpayers
whose death occurs in 2010. Under the law, estate taxes will gradually
decrease through a combination of reducing the highest marginal estate
tax rate and increasing the estate exemption amount. However, the
rules and regulations change every year or so until 2011, when the
law is repealed and the present law is reenacted.
Now is
the time to meet with your clients to discuss the many precautions
they may need to take to avoid potential trouble with the new, ever-changing
tax laws. Here are a few trouble spots to look out for.
Beware
of rising exemptions - The current estate tax exemption of
$1 million will gradually increase to $3.5 million in 2009.
Since
there is no tax on assets inherited by a spouse,
this exemption applies only to children or other heirs. Under standard
estate planning formulas, this could significantly shrink the assets
a surviving spouse would receive. Estate plans need to be reviewed
to thwart off such unwanted results.
The
tax will return - In 2011, the new law will expire and the
estate tax law will revert back to its present day regulations.
This means unless you can predict exactly what year your client
will die, it's important to take necessary precautions. It's also
important to note these new relief measures are being phased in
slowly over nine years. With several Congressional and presidential
elections to come, the provisions will be subject to future legislative
changes.
State
taxes are here to stay - Under the current system, most states
craft their taxes to match the amount of a federal government credit
for state taxes. For example, an estate which owed $15,000 in state
taxes could apply that amount as a credit to their federal taxes.
This credit will eventually be replaced with
a federal estate-tax deduction that is less than half that of the
full tax credit. Don't let your clients subject their heirs to
the effects of these future tax laws. As an estate planning expert,
you can take advantage of this unique opportunity to provide superior
service to your clients and their loved ones.
ISN's
Protocol Marketing Program (PMP) Helps You and Your Clients
ISN has
introduced a proven system to help you communicate the benefits of
estate planning to your clients - as well as close more sales. As
a contracted associate with ISN, you can benefit from the remarkable
power of the innovative Protocol Marketing Program (PMP). This interactive,
easy to use system motivates consumers to purchase financial products
based on a series of information-gathering questions. By following
PMP's basic framework, you learn more about your prospective client
and offer effective planning through a diverse means of attaining
their specific financial objectives. Utilizing unique legal strategies,
PMP matches a prospect's financial goals with viable legal solutions.
Then, PMP suggests funding the legal strategies with specific financial
products. PMP helps the financial product sale become part of the
legal strategy that the prospect has chosen to accomplish their goals
and objectives.
PMP provides
a turnkey, time-tested program ISN associates are linked with a national
network of estate planning attorneys to help implement the legal
strategies. In addition, the PMP system has standardized forms and
methodologies that help establish the protocol for the legal discussion.
These proprietary systems have a long track record of success within
the stock brokerage, banking and legal professions. PMP helps increase
interest at public seminars, increase appointments and helps create
substantial financial product sales and higher closing ratios.
Become
a contracted associate with ISN and unlock the power of the Protocol
Marketing Program for you and your clients.
For more
information on the changing estate tax laws, or how ISN's Protocol
Marketing Program can help you grow your business, contact
us online or call Jeff Berson at 1-800-338-1892.
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