Erik DeGregorio

Estate planning is a crucial aspect of managing your wealth and ensuring a smooth transition of assets to your heirs. One of the most significant concerns for estate owners is the burden of estate taxes, which can consume a substantial portion of your estate’s value, leaving less for your beneficiaries.  For advisors, helping their clients preserve their investments and protect their assets from eventual liquidation is paramount.  Estate taxes may threaten those assets.  This is why life insurance can be a stalwart hedge against the immediate asset erosion that large estates face upon the death of the primary breadwinner. The Estate Tax Challenge Currently, the marginal estate tax rate for assets transferred is as high as 40%, and it is triggered at the time of death. This tax is not limited to the income generated by assets but applies to the assets themselves. When estate taxes are paid, the capital available for generating future income and wealth is significantly reduced. The burden of paying estate taxes can lead to several challenges. Estate owners are required to pay these taxes with liquid assets, which can pose problems for business operations, property management, or the financial well-being of family members who rely […]