by Dan Celia
Question: I am concerned about taxes next year. Are we really going to be paying higher taxes? If so, what should we do?
Answer: Regardless of who wins the presidential race, in 2013 everyone will be paying higher taxes in some form because the Health Care Reform Act has been upheld by the Supreme Court. Higher taxes are unavoidable.
However, what you can avoid is a tax Armageddon brought on by poor estate planning. Even if you have a healthy savings account, 401K or IRA, good estate planning is essential.
Particularly if you have a complex estate, I encourage you to put in order all your financial documents, such as trusts, wills and investment accounts, so you can leverage every legal tax advantage. Remember that you can’t take advantage of tax breaks if you don’t properly plan ahead. (Proverbs 21:5)
Finally, I suggest that if you are concerned about taxes, tax planning or estate planning, contact Diane O’Neal at the AFA Foundation.
Dan Celia has been in financial management for more than 30 years. He works closely with AFA Foundation and can be heard six days a week on AFR Talk (www.afr.net).