Two financial tools are useful in preparing for the inheritance tax. The one
most suggested is to purchase a life insurance policy designed to pay the
inheritance taxes upon death. The other, perhaps a little fraught with
potential mischief, is for the pre-dying elder owner to pass title to the
next generation before death. My mother-in-law did this, selling her home to
her daughter for $1 in exchange of a home to live in until her death, and
there was then no estate to pay taxes on (also the value was below that of
the inheritance tax). Financial planning and responsibility in life can
offset the effects of the inheritance tax.

Anne
Anne Pemberton
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http://www.erols.com/stevepem
http://www.erols.com/apembert
http://www.educationalsynthesis.org

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