The Gillman Tax Letter, May 1955 Page: 1 of 3
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Tm13 GTmiAN TAX LETTER
Published Monthly by
ADOLPH E. GILLMAN
Estate Planning and Life Underwriting1ST FLOOR TOWER BLc.
BALTIMORE 2, MD.
LEXINGTON 0084MAY 1955
Dear Sir:
You, like most men, have doubtless planned your estate on the
assumption that your wife will survive you, and that, therefore, the
only need for insurance is on your life. But, have you considered
what would happen to your income and your estate if you should be the
survivor? You think your salary and other income would go right on
without change, but under present conditions that just isn't true.
First, you would have to pay someone to run your home. Let's
assume that this would cost no more than your wife's current personal
expenses, with the result that on this point you break even.
Secondly, you will find that your income tax is higher because
of loss of income splitting. Observe these figures:Taxable
Income
$10,000
20,000
32,000
50,000
Thirdly, and even
estate and inheritance
Net
Taxable
Estate
$ 200,000
300,000
500,000
1,000,000Tax Decrease in
Head of Family Spendable
Joint Return Return Income
$ 2,200 $ 2,420 $ 220
5,280 6,260 980
10,400 12,420 2,020
20,300 23,580 3,280
more significant, are your greatly increased
taxes. Here's how these taxes will be affected:
Taxes if Wife Taxes if Added Cost
Survives (with Husband if Husband
Maximum Marital) Survives Survives
$ 8,650 $ 34,550 $ 25,900
24,000 64,350 40,350
57,300 126,500 68,750
152,900 303,500 150,600So you see, if you have a $50,000 gross income and a $500,000
estate, your net spendable income will be cut $3,300 by income taxes,
and at the same time you will need to set aside almost $70,000 more
money during your lifetime for death taxes. That is why many men have
seen the wisdom of setting up some insurance on their wife's life.
Furthermore, if you placed some of your securities in a Trust to
run for 10 years, you could probably pay the greater part of the
premiums from current savings in income taxes.
Cordially,1204 CAREW TOWER
CINCINNATI 2, OHIO
MAIN 2814
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Gillman, Adolph E. The Gillman Tax Letter, May 1955, periodical, May 1955; Cincinnati, Ohio. (https://texashistory.unt.edu/ark:/67531/metapth1345270/m1/1/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Rosenberg Library.