Estate Tax Planning

You’re losing money if your salary isn’t structured smartly. As a CA and finance consultant, I’ve reviewed salary structures for hundreds of professionals. And I see the same pattern every time: decent income, poor planning, and benefits left on the table. If you’re salaried and want to build real wealth, here’s what you need to start paying attention to: ✅ Choose the right tax regime - New Regime: Offers a ₹75,000 standard deduction and simplified slabs, with tax-free income up to ₹12 lakh. - Old Regime: Better if you leverage HRA, LTA, or deductions like 80C and 80CCD(1B). Use a tax calculator to pick the winner. ✅ Tap into Tax-Free Allowances - If you rent, use HRA to significantly lower your taxable income (old regime). - Use LTA to cover two domestic trips every four years (old regime). - Meal Vouchers up to ₹50 per meal for two meals/day is tax-free (old regime). ✅ Maximize deductions smartly - Section 80C: Invest up to ₹1.5 lakh in EPF, PPF, ELSS, or insurance (old regime). - NPS: Add ₹50,000 under 80CCD(1B), plus employer contributions (10–14% of salary, both regimes). - Health Insurance: Claim ₹25,000–₹75,000 under 80D for premiums (old regime). ✅ Watch your standard deduction ₹75,000 in the new regime, ₹50,000 in the old. Check your Form 16 to ensure it’s applied. ✅ Bonus isn’t for splurging Treat it as capital. Invest at least half in ELSS, mutual funds, or your emergency corpus. Your salary is more than a paycheck, it’s a system for financial growth. Optimize it to keep more of what you earn. What’s one tax-saving move you’ve made that actually worked?

Would you like for a court to control your finances if you cannot? How might you want a legacy, financial or otherwise, used and remembered? What happens in the event you are ill or incapacitated, even temporarily? If you have one, do you feel children or other heirs would use a legacy - large or small - wisely? Austin Jarvis, JD MBA, estate planning specialists on my Schwab Center for Financial Research (SCFR) team, recently published a SCFR Wealth Management Insight, "5 Foundational Estate Planning Documents." https://lnkd.in/e8m36F4J All adults, no matter their age, health, wealth, or family situation can increase their choice, clarity, and control of their finances with foundational estate planning documents. The first four documents are legal in nature: 1️⃣ Durable power of attorney 2️⃣ Advance directives 3️⃣ Will 4️⃣ Often, a revocable living trust, combined with a Pour-Over Will The last, though, is not legal. It's directive, and emotional: 5️⃣ "Love you letter' to your family Call it what you want. A "letter of instruction," if you aren't the "softer" type! Either way, this document is an opportunity to share information about the things in your life that may not be obvious to anyone but you. What financial and other values are most important to you? What messages would you like to be passed on to family? What might you not say in a will, even (yes) a simple message of positivity and purpose. Estate planning for some may feel unpleasant. Consider the alternative: lack having your voice heard or limited or unclear control over how all you worked for is used. All financial and wealth management plans ideally include these foundational documents, in a package, that go beyond law to also express, what's important to you? For more, see the memo. #estateplanning #wealthmanagement

One of the most challenging skills in decision-making is facing uncomfortable truths head-on. Despite tech advances, aging—and the shift from doing to being, and ultimately, not being (yes, death)—is currently inevitable. This shared journey often includes a reduction in or loss of cognitive function. Making critical decisions when your "necktop computer" (brain) is compromised is tough. That’s why some savvy folks are preparing things like gun trusts, specifying what happens to their firearms if and when cognitive decline sets in. This is just one example, but it's a smart move to plan for this statistically-likely future, even if it's a difficult reality to face. So, what can you decide now for better decisions later? Think of this as designing an elegant "last chapter" for your life. No need to fear it—it might or might not be long, but it can be lovely! Here are five ways to start this process: 1. Create an Advance Healthcare Directive: Outline your healthcare wishes and appoint someone to make decisions if you can’t. This ensures your preferences are respected and reduces the burden on loved ones. 2. Set Up a Durable Power of Attorney: Appoint a trusted person to handle your financial and legal matters if you become incapacitated. This provides financial security and ensures your affairs are managed properly. 3. Create or Update Your Will: Specify how you want your stuff distributed after your death, including naming an executor and guardians for minor children. This clarifies your wishes and prevents potential conflicts. 4. Establish a Trust (e.g., Gun Trust, Living Trust): Set up trusts to ensure smooth transitions and management of your stuff. Trusts can help avoid probate, simplify distribution, and offer tax benefits. 5. Organize Important Documents and Information: Gather essential documents like birth certificates, marriage licenses, insurance policies, bank details, and key contacts. Store these in a safe, accessible place and inform a trusted person about their location. I finally made it through the first 4, and I'm working on #5. What decisions will you make today to create an elegant last chapter for your future self? #decisionmaking

How to plan for your January 2026 tax bill, without stress Not waiting until December to panic? Revolutionary. Every January, I hear the same thing from new clients: "I didn’t think it would be that much." "My accountant didn’t give me a heads-up." "Is there a payment plan?" Let’s not do that again. Here’s your month-by-month plan to avoid the January 2026 panic: 👇 🟦 August–September 2025 → Get your 2024–25 books up to date → Chase any missing receipts → Check what’s been paid vs what’s owed No point planning for a bill you haven’t calculated. 🟦 October 2025 → Ask your accountant for an estimated tax liability → Check if you’ve set aside enough → If not, adjust your next few months accordingly You still have time to fix things. Use it. 🟦 November 2025 → Ringfence your tax pot → Keep it in a separate account → Set a reminder to not dip into it If you’ve got the money sitting in your main account, it’s already half-spent. 🟦 December 2025 → File your return early → Know the final number → Enjoy your Christmas without HMRC haunting you Early submission = no January surprises. 🟦 January 2026 → Pay the bill → Don’t panic → Start planning next year’s tax from February onwards This isn’t rocket science. It’s just boring systems that make life 10x easier. Most agency owners overcomplicate this. Or ignore it until the last possible moment. Then wonder why January feels like a financial hangover. You’ve got five months. Use them well.

Many high earners lose up to five figures from poor tax planning. Here’s what to check before year-end: →Equity compensation Plan for taxes on RSUs, ESPPs, NSOs, and ISOs before exercising or selling. → Tax diversification Spread assets across pre-tax, Roth, and taxable accounts for flexibility. → Charitable donations Lump-sum giving can help you exceed the standard deduction and increase tax efficiency. → Tax-loss harvesting Offset gains, deduct up to $3,000 in losses, and clean up your portfolio. → Roth conversions Move funds from pre-tax to Roth when markets or income are lower. → HSAs Triple tax benefit: pre-tax contributions, tax-deferred growth, and tax-free withdrawals for qualified expenses. → 401(k) optimization Choose pre-tax or Roth contributions based on your current vs. future tax outlook. → 529 plans Tax-free growth, Roth rollovers, and the ability to front-load 5 years of contributions. →Real estate Use 1031 exchanges, expense write-offs, and other strategies to reduce taxable income. → Gifting Annual exclusion is $19,000 per person in 2025; larger gifts tap into your lifetime exemption ($13.99 million per individual and $27.98 million per marriage). The earlier you review, the more options you’ll have before December 31st. Which one of these will you be tackling first?

💰 𝐈𝐟 𝐲𝐨𝐮𝐫 𝐂𝐓𝐂 𝐢𝐬 ₹𝟓𝟎 𝐋𝐏𝐀, 𝐡𝐞𝐫𝐞’𝐬 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥𝐢𝐭𝐲: In-hand salary: ₹2.92 L/month Paid in taxes: ₹20 L/year (40% of your CTC!) 𝐂𝐓𝐂 𝐯𝐬. 𝐈𝐧-𝐡𝐚𝐧𝐝 𝐛𝐫𝐞𝐚𝐤𝐝𝐨𝐰𝐧: ₹10 LPA = ₹72k/month + ₹2.5 L in taxes ₹20 LPA = ₹1.31 L/month + ₹6.5 L in taxes ₹30 LPA = ₹1.84 L/month + ₹11 L in taxes ₹40 LPA = ₹2.36 L/month + ₹16 L in taxes 💡 𝐖𝐡𝐞𝐫𝐞 𝐝𝐨𝐞𝐬 𝐲𝐨𝐮𝐫 𝐦𝐨𝐧𝐞𝐲 𝐠𝐨? Income Tax + GST + Capital Gains Tax + Customs Duty. Income tax is a major chunk which goes even it is kept in your hand. However, Your biggest expense isn’t rent or EMIs—it’s taxes. And it doesn’t stop there: 𝐆𝐒𝐓: Every purchase has ~18% added. 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧𝐬: Your SIPs? 15% short term taxed when withdrawn. 𝐂𝐮𝐬𝐭𝐨𝐦𝐬: Imported gadgets cost ~20% more. 𝐖𝐡𝐚𝐭 𝐜𝐚𝐧 𝐲𝐨𝐮 𝐝𝐨? You can’t avoid taxes, but you can reduce your liability. Here’s how: ✅ 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐭𝐚𝐱-𝐬𝐚𝐯𝐢𝐧𝐠 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬: Utilize ₹𝟏.𝟓 𝐋 under 80C (PPF, ELSS, insurance) and additional ₹𝟓𝟎𝐤 for NPS (80CCD). ✅ 𝐂𝐡𝐨𝐨𝐬𝐞 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞: Compare the new regime (lower rates, no deductions) vs. old regime (higher rates, deductions). ✅ 𝐂𝐥𝐚𝐢𝐦 𝐚𝐥𝐥 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧𝐬: Rent? Claim 𝐇𝐑𝐀. Home loan? Deduct principal (𝟖𝟎𝐂) + interest (𝟖𝟎𝐄𝐄𝐀). Medical? Use 𝟖𝟎𝐃 for health insurance. ✅ 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐬𝐚𝐥𝐚𝐫𝐲 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞: Ask your employer for perks like food coupons, LTA, or car lease to reduce taxable income. ✅ 𝐒𝐦𝐚𝐫𝐭 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠: Use equity mutual funds for long-term capital gains (taxed at just 10% over ₹1 L). 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐭𝐚𝐱-𝐟𝐫𝐞𝐞 𝐛𝐨𝐧𝐝𝐬 𝐨𝐫 𝐡𝐢𝐠𝐡-𝐫𝐞𝐭𝐮𝐫𝐧 𝐏𝐏𝐅 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬. ✅ Keep tax-advantaged documents ready: Submit proofs for deductions timely to avoid default higher tax deductions. PS: Income tax collection this year alone will cross $143 billion—more than corporate tax or GST. Let’s take control of what’s within our reach. #finance #tax #jos #incometax #Plan #invest #India #gst #ctc #package #80c

𝐓𝐡𝐞 𝐎𝐧𝐞 𝐁𝐢𝐠 𝐁𝐞𝐚𝐮𝐭𝐢𝐟𝐮𝐥 𝐁𝐢𝐥𝐥 (OBBB): A Summary of key farm provisions... ✅ Most provisions stay the same, plus: ✅ Bigger PLC & ARC payments • including 30 million addt'l base acres ✅ $155K payment cap (indexed) • LLCs & S-Corps now treated like Partnerships for payment limitations ✅ Full bonus depreciation extended ✅ Permanent 20% pass-through deduction ✅ Additional crop insurance subsidies • Allows SCO w/ARC election ✅ Huge win for estate planning:  • Estate exemption now $15M/$30M  • Special-use raised to $15 million  • New options to sell land to heirs with deferred gain These changes offer powerful tools to preserve farmland, reduce taxes, and plan for smooth generational transitions. 𝐖𝐡𝐚𝐭 𝐘𝐨𝐮 𝐒𝐡𝐨𝐮𝐥𝐝 𝐃𝐨 𝐍𝐞𝐱𝐭 1️⃣ Review your estate plan: Ensure you’re set up to use the $15M special-use valuation and estate tax exemption. 2️⃣ Consider entity restructuring: To take full advantage of the $155k payment caps. 3️⃣ Plan equipment and infrastructure purchases to leverage full bonus depreciation. 4️⃣ Explore installment sale options if transferring land to heirs - combine with 6166 to spread tax burden. 5️⃣ Talk to your advisors: Tax laws and elections (like §2032A and 6166) require documentation and planning to fully benefit #agriculture #familyfarm #farmers #legacyplanning #farmraised ----------------------------------------- Hello, my name is Mike Downey and I help farmers, landowners & ag professionals grow, diversify and transition their family legacies through farm business coaching, written succession plans, and diversification off-the-farm.

With the final deadline for tax filing coming closer for the FY year 2022-2023, Here are some effective tax planning strategies for individuals. 1) Invest in tax-saving instruments like Equity Linked Savings Scheme (ELSS), which offers tax deductions under Section 80C of the Income Tax Act. 2) Claim deductions under Section 80D for health insurance premiums paid for yourself, your family members, and your parents. Additionally, expenses on preventive health check-ups are also eligible for deductions. 3) Optimize Home Loan Benefits: If you have a home loan, you can claim deductions for both principal repayment (under Section 80C) and interest paid (under Section 24) on the loan. 4) Plan Capital Gains: Consider tax-efficient investments and strategies for capital gains. Long-term capital gains (LTCG) tax rates are lower than short-term capital gains tax. Hence the holding period of your investments will affect how much tax you will pay. You can also utilize provisions like capital gains exemptions by investing in specified bonds or property under Sections 54, 54EC, or 54F. 5) If you are living in a rented house and are eligible to claim House Rent Allowance (HRA), in most cases if not entire, decent chunk of your rent can be deductible from your taxable income. 6) Plan Gift and Inheritance: Understand the provisions related to gifts and inheritance tax to plan your finances accordingly. Gifts received from specified relatives are generally tax-exempt, while inheritance tax is not applicable in India. 7) Plan Retirement Contributions: Make use of retirement-oriented investments such as the National Pension Scheme (NPS), which provides additional deductions under Section 80CCD(1B). Voluntary contributions to the EPF can also be beneficial for tax planning. Disclaimer: The information provided here is for informational purposes only and should not be considered financial or tax advice. Always consult with a qualified tax professional for personalized advice based on your specific situation and the latest tax laws. #TaxPlanning #personalfinance

You don’t need to fear taxes. You need the right approach. Stop confusing tax avoidance with tax evasion. Legal strategies exist. Here’s how to use them wisely. We’ve seen the confusion: Thinking all deductions are illegal Avoiding legitimate strategies for fear of audits Mislabeling timing or entity decisions as “cheating” A hard truth: Taxes are rules, not punishments. Play by the rules, and keep more of your money. Start here: 1. Legal Tax Planning ↳ Use deductions, credits, and incentives consistently ↳ Keep all actions within the law 2. Aggressive Shelters with Caution ↳ Evaluate carefully with expert advice ↳ Align strategies precisely with regulations 3. Timing Income & Expenses ↳ Shift legally to optimize cash flow ↳ Document everything clearly 4. Choose the Right Entity ↳ Incorporate to leverage legal benefits ↳ Reinvest profits following corporate tax rules 5. Claim Deductible Expenses ↳ Track legitimate business expenses accurately ↳ Avoid fear; follow tax laws precisely 6. Use Retirement Contributions ↳ Contribute strategically to tax-advantaged accounts ↳ Reduce taxable income while saving for the future 7. Charitable Donations ↳ Document contributions thoroughly ↳ Use them as legal tax-reduction strategies 8. Seek Professional Advice ↳ Certified accountants = compliance + strategy ↳ Don’t DIY blindly Tax avoidance is smart. Tax evasion is illegal. Plan carefully, stay compliant, and keep your money working for you. Follow me Marc Henn for more. We want to help you Retire Early, Supercharge Your Cash Flow, and Minimize Taxes. Marc Henn is a licensed Investment Adviser with Harvest Financial Advisors, a registered entity with the U. S. Securities and Exchange Commission.

You know the importance of drafting a Will. (but you bury your head instead.) Your family thinks you have it under control. Yet you haven't looked at your beneficiaries in years. It's okay! I understand. It's not exciting. But it's your duty. Your obligation to your family. It's simply the right thing to do. 👉 Here's a step-by-step breakdown to get started. STEP 1 - List All Assets ✅ Identify everything you own. ✅ This includes real estate, investments, and personal items. ✅ For example, a house, stocks, and a cherished piece of jewelry. -- STEP 2 - Choose Beneficiaries ✅ Decide who gets what. ✅ This can be family, friends, or charities. ✅ A unique example: leaving your coin collection to a nephew passionate about history. -- STEP 3 - Consider Tax Impacts ✅ Understand how choices affect taxes. ✅ Consult with a financial advisor for best practices. ✅ For instance, gifting a portion to charity for a tax deduction. -- STEP 4 - Update Regularly ✅ Life changes, so should your plan. ✅ Births, deaths, and divorces are all triggers for updates. ✅ A real-life scenario: revising your will or trust after the arrival of a grandchild. -- STEP 5 - Communicate Your Wishes ✅ Share your plans with your family. ✅ This prevents surprises and disputes. ✅ Sharing your decision to donate a portion to an important cause can inspire others. -- Contrary to common belief, everyone needs estate planning. Whether you're: ➡️ working or retired ➡️ single or married ➡️ wealth or not Careful estate planning can benefit you. P.S. What's your next step in estate planning? P.S.S. If you need help, I'll be here when you're ready. ___________ 👉 I post here regularly here. Do you want to hear from me more often? Follow me Patrick Shope, CWS® if you want more no-nonsense retirement planning tips, strategies, and ideas.