 Louis
D. Brandeis was a Supreme Court Justice from 1919 to 1939. The following
are some of his thoughts on tax avoidance:
"I lived
in Alexandria, Virginia. Near the Supreme Court chambers is a toll
bridge across the Potomac. When in a rush, I pay the toll and get home
early. However, I usually drive outside the downtown section of the city
and cross the Potomac on a free bridge. The bridge was placed outside
the downtown Washington, D.C. area to serve a useful social service:
getting drivers to drive an extra mile to help alleviate congestion
during rush hour.
"If I went
over the toll bridge and through the barrier without paying the toll, I
would be committing tax evasion. However, if I drive the extra mile
outside the city of Washington and take the free bridge, I am using a
legitimate, logical and suitable method of tax avoidance, and I am
performing a useful social service by doing so.
"For my
tax evasion, I should be punished. For my tax avoidance, I should be
commended. The
tragedy in life is that so few people know that the free bridge even
exists."
The estate tax
rates are very onerous, so it makes sense to find the free bridge.
Estate
planning is the creation, conservation and utilization of family resources
to obtain the maximum support and security for the family in their
lifetime and after death. It certainly would be nice to pass from this
world without checking in with the IRS. In a study by Cornell
University, they documented the largest intergenerational transfer of all
times--$12 trillion due to the baby boom generation. With no planning and
the current estate tax structure, balancing the budget will not be an
issue. However, our sole concern may not be the reduction of estate taxes.
Family security may never be sacrificed for tax advantages. Have
you formulated your final affairs with a will and appropriate trust
documents?
I would like to
give you one more quote from a judge, Honorable Learned Hand, who was on
the U.S. Court of Appeals:
"There are
two systems of taxation in our country, one for the informed and one for
the uninformed."
For more information, contact:
Emerald
Planning Services, Inc.
573 Millwood Road
Chappaqua, NY 10514-1317
914-241-0707 (voice)
914-864-2300 (fax)
info@emeraldplanning.com
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