Lessons learned from James Gandolfini
Posted on July 19th, 2013 in Uncategorized
We all know someone who passed way too early and upon reflection we realize no one knows when their time may come.
This was demonstrated again few weeks ago when that actor James Gandolfini passed away at the age of 51. While his death touched his fans, his family’s pain is compounded due the financial burdens resulting from the lack of estate planning. It turns out that Mr. Gandolfini made some vary uninformed choices in setting up his estate. As a result almost 80% of his estate will be subject to the federal estate tax at a rate of 40%. To make matters worse the State of New York also has an estate tax at the rate of 16%. Needless to say that once all taxes are paid Mr. Gandolfini’s estate will be a fraction of what it was.
The fact is that this did not need to happen, with good counsel from CPAs and attorneys, he could made moves to limit estate taxes and in the process better protect his family. Wills and estate planning can be done at very reasonable cost compared to what you could save in taxes.
The lesson here is simple; do not wait to get your estate in order, it is one of the smartest things you can do to protect your family.