Evaluating Your Gross Estate

One of the first steps in determining your federal estate tax liability is determining what assets and property are considered part of your estate. From this starting point, it will be easier to project future estate growth and develop the appropriate strategies for meeting your ultimate goals.

Treasury regulations relating to the taxation of property owned at death contain a catch-all definition that the “gross estate of a decedent who was a citizen or resident of the United States at the time of his death includes the value of all property, whether real or personal, tangible or intangible, and wherever situated, beneficially owned by the decedent at the time of his death.”

Taking Stock

Among those often overlooked items that are includable in your estate are your rights to future income, such as your right to payments under a deferred compensation agreement or partnership income continuation plan. Likewise, your interests in any business you own at your death are includable in your gross estate. In addition, your personal property, investments, real estate, retirement plans, and proceeds of life insurance policies that you own are also included. The value of Social Security survivor benefits, either lump sum or monthly annuity, are not included in your gross estate.

The actual task of determining what is includable in your gross estate can require some in-depth analysis. Your estate should be re-evaluated each year so your beneficiaries and heirs will be spared from facing agonizing decisions over your wishes and federal estate tax requirements. In addition, the use of certain estate planning documents, coupled with any necessary adjustments to property ownership, has the potential to minimize estate taxes and maximize any estate tax credits.

This information is being provided for informational purposes only and is not intended to be interpreted as specific legal or tax advice. Neither MassMutual nor any of its employees or representatives are authorized to give legal or tax advice. Individuals are advised to seek the guidance of their own personal legal or tax counsel.

Copyright © 2004 Liberty Publishing, Inc. All Rights Reserved.

58873

Registered Representatives and Financial Advisors of Park Avenue Securities LLC (PAS), 5040 Roswell Road, Atlanta, GA 30342, 1-800-366-0839. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor. Financial Representatives, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. Southeastern Financial Group, LLC are not affiliates or subsidiaries of PAS or Guardian.

PAS is a member of FINRA, SIPC. The Financial Representatives of Southeastern Financial Group, LLC are not licensed to sell insurance in all 50 states. To find out if an agent is licensed in your state, please contact Debe Draudt at 205-313-6724. Neither Park Avenue Securities, Guardian, nor their representatives render legal or tax advice. Please consult with your attorney, accountant, and / or tax advisor for advice concerning your particular circumstances. Disability Income and Long Term Care products underwritten and issued by Berkshire Life Insurance Company of America, Pittsburgh, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Products not available in all states. Product provisions and features may vary from state to state.

THE LIVING BALANCE SHEET® and logo are registered trademarks of The Guardian Life Insurance Company of America, New York, NY. Patent is pending. The trademark The Living Balance Sheet and the content and graphics on this website which relate or refer to The Living Balance Sheet system are used under license from Guardian.

The information or opinions contained in this Internet site should not be construed by any consumer and/or prospective client as an offer to sell or the solicitation of an offer to buy any particular investment product. The information contained herein is directed solely to those individuals who reside in jurisdictions in which the representative is registered in the state where the consumer and/or prospective client reside. Any subsequent direct communication with a consumer and/or prospective client shall only be conducted by a representative that is registered in the state where the consumer and/or prospective client reside.