Even though Facebook flagged this post: “Joe Biden wants to get rid of something called ‘stepped up basis’ that reduces inheritance taxes” It’s true. Biden wants to eliminate the stepped-up basis. So, what does this mean for you?
It means that if you inherit stocks, bonds, real estate, a business, farm or any other asset, you will have to pay the taxes on the difference of the value and the original purchase price instead of only having to pay taxes on the increase in value since you inherited the asset. Ouch.
But there is a way around having to sell assets to pay this tax:
The wealthy always find ways to avoid taxes, which is why they continue to be wealthy. Those who don’t outthink the politicians are the ones who get hit with the burden of paying more taxes when the political climate changes. Nothing is surer in life than death and taxes. Knowing this, and planning accordingly, you will value the life insurance which can help you avoid paying certain taxes while you live and leave the next generation better prepared to face the future.
Many say they don’t care about leaving an inheritance for future generations. But what they are admitting by such a statement is “they really don’t care about the future.” But Solomon reminded us, “A good person leaves an inheritance for their children’s children…” in Proverbs 13:22.
The prophet Hosea tells us, “People are destroyed for lack of knowledge.” Proverbs 29:18 reminds us, “Where there is no vision the people perish.” So, the future is something in which we should have interest. Enough so, to make an investment today in hopes of improving the future for others.
Not being able to envision a better future (evidence of little faith) and forsaking the desire of leaving a legacy for future generations has left America between a rock and a hard place financially. Focusing solely on what is needed today instead of planning to bless future generations is the sad reality of America today. Many believe they have met all their needs by saving up enough for their own retirement. And while less than 10% of all Americans have really accomplished this feat, the attitude of “I have what I need and am in need of nothing” is prevalent. Yet, these people don’t realize how wretched and pitiable they really are.
Carnegie Mellon University found that those who meet the needs of others decreased their own hypertension by up to 40%. This proves that living to help others is not only wise; it is healthy. Serving others with our time, energy and money, provides a joy that is otherwise unattainable. Self-serving individuals end up being the most wretched and pitiful people on the planet. Even if they somehow accumulate great riches, they miss out on the wealth and joy that come from blessing others with their resources.
Life insurance has been around in some form or another since the Roman Senate. It was created by those who cared enough to make sure their loved ones didn’t suffer financially when they died. Today, life insurance is even more capable of blessing future generations than ever before, while giving you the tools to manage your own finances in a way that helps you keep more of what you make, thus making it possible for you to have more money in retirement and leave a tax-free legacy for future generations.
Dr. Tomas P. McFie
Most Americans depend on Social Security for retirement income. Even when people think they’re saving money, taxes, fees, investment losses and market volatility take most of their money away. Tom McFie is the founder of McFie Family Insurancewhich helps people keep more of the money they make, so they can have financial peace of mind. His latest book, How to Build Sustainable Wealth, can be purchased here.