When it comes to estate planning, one often overlooked tool is the IRS Life Tables. These tables, which estimate life expectancy based on age, but do not differentiate between men and women, are essential in calculating financial distributions for estate planning tools like Charitable Remainder Trusts (CRTs). Klaus Gottlieb, at the firm Wealth Care Lawyer, has addressed this topic in detail for a professional audience in the National Law Review. He uncovered some quirks in the tables that are not only interesting but may be relevant for sophisticated planning.
Gottlieb, an estate planner in San Luis Obispo, who also teaches Wills & Trusts and Business Law at the Monterey College of Law at the San Luis Obispo Campus, emphasizes that few things are more important in estate planning than understanding life expectancy. “IRS life tables play a crucial role in determining what tax deductions you may receive from a CRT ” he says. “If the tables show a longer life expectancy, your charitable deduction may be reduced, as the charity is expected to wait longer to receive the remaining assets.” There are interesting nuances, and these are explained in the National Law Review article.
IRS Life Tables and Charitable Giving
For those in San Luis Obispo interested in charitable giving, finding a knowledgeable estate planner is key. “I think we are not always looking at the big picture, but IRS life tables directly affect the tax deductions related to CRTs.” Gottlieb explains, “These tables estimate how long the trust will make payments to you, which influences the size of the deduction you can claim.” In a community like San Luis Obispo, where planning for charitable impact is common, understanding these details is key.
In addition to discussing IRS life tables in his professional writings, Gottlieb’s prior blog post about life expectancy in San Luis Obispo has achieved the top spot in Google search results. The post, titled “Life Expectancy in San Luis Obispo County: Do You Live in a Blue Zone?” explores local factors influencing life expectancy and the impact on estate planning.
Differences in IRS Life Tables
Gottlieb also notes that IRS life tables often differ from other life expectancy estimates, such as those used by insurance companies. “The IRS tables are typically more conservative, which can influence both your charitable deductions and required minimum distributions from retirement accounts,” he says. With this insight, San Luis Obispo residents can make more informed decisions when planning their estates.
Estate Planning in San Luis Obispo
For anyone focused on estate planning in San Luis Obispo, Gottlieb recommends working with a professional who understands how these tools affect your financial future. “Applying IRS life tables in conjunction with other life tables properly ensures you get the most out of your estate planning,” Gottlieb, of Wealth Care Lawyer, adds.
For more detailed insights, you can read Gottlieb’s full article in the National Law Review here.
You can make an appointment with him by following the links on this page.
