Taxes on the Final Return: Avoid the Greatest Eroder of Wealth

Planning ahead can ensure more of your financial legacy remains intact once you’ve continued on with your journey.

Preparing the final tax return is an important financial activity that can either set your heirs up for a smooth tax-deferred transition of your wealth or erode your assets substantially. For these reasons, professional help is a good idea especially if the deceased was self-employed or an investor. Look for a professional with a recent certificate in preparing final tax returns. If you’re the surviving spouse, remember that it’s often difficult to make sound financial decisions in the year following the loss of a spouse. Your tax pro can be of special assistance to you to make sure you take the right actions in this difficult time.

How to get ready? Ask your professional to prepare the Tax Efficient Assets Transfers Calculator with you. It will allow you to determine the tax consequences of transfers of all types of assets to a spouse, child, or charity either during the taxpayer’s lifetime or at death. See this example of the calculator in action.