As you grow older, you realize there are two things you cannot avoid: estate taxes and death. Preparing for these two are beneficial not only to you, but also – and more importantly – to the loved ones you will leave behind.
One of the biggest concerns among Utah residents who have considerable assets is the estate tax, which can potentially drain any savings and value on the properties left behind.
Utah used to collect sponge tax, but the state removed it in 2005. Moreover, if you decide to transfer your assets such as your home to your children or spouse as a form of inheritance, the state won’t collect taxes as well.
This, however, doesn’t mean you don’t have to pay any estate taxes since the federal government levies it. The good news is exemptions are high, and the Internal Revenue Service adjusts them annually to account for inflation.
Nevertheless, work closely with an estate planner if you have assets worth more than $5.49 million today.
If you have a leeway with estate taxes, you may not have it when it comes to funerals. Contrary to popular belief, this is a costly affair. The average funeral cost these days is more than $7,000. In Utah, it can be as low as $2,500, but that still doesn’t include a plot and a casket.
To save yourself trouble, Lindquist Mortuaries and Cemeteries says you may want to expand your search for funeral packages or you could search the available funeral planning services in Roy. The Funeral Consumers Alliance of Utah can also provide you with tips on how to lower the costs, even getting them for free. For example, honorably discharged veterans can receive a free burial in the veterans’ national cemetery while next of kin can donate the body to a state university as long as they live within 50 miles.
Even if you’re no longer around, you can still give your loved ones peace of mind and ease from financial burden. Consider planning these two now.