Easing the Tax Burden for Your Loved Ones

Welcome to the Doctor’s Eyes Only podcast, and today Vestia Partner and CEO Lauren Oschman talks about ways that doctors can minimize a potential tax burden for their heirs when transferring wealth. At the time of this recording, the threshold that needs to be met to qualify for estate taxes is so high that many physicians don’t consider taxes when doing estate planning. There are some things to consider in relation to the type of accounts that house your retirement funds, and the tax benefit you received while accumulating assets could cause a potential tax implication for the heirs who inherit those assets.

“We talk about how these assets are probably your highest tax burden in retirement just because there's so much accumulating that no one's ever paid taxes on and all of it’s taxed as income tax when you retire. What happens when you pass those assets onto your heirs? It actually gets even worse. So if you are to leave an IRA, a 401k, things like that to your kids, under current tax law, your kids have to withdraw those funds within 10 years of receiving them and they're all taxed as income when they pull those out because none of that has ever been taxed before.”