Click Here To Get Your FREE
To Retirement Estate Planning Today!
Estate Planning
Much like other aspects of your finances, estate planning can be daunting work, and will cause plenty of hassles if not done properly. That being said, there are ways and means to make sure that you can be a plan that is as well-informed as possible and has the ability to make a vital difference to the lives of your loved ones you will leave behind.
Each estate plan has specific needs, which should carefully be taken into account before making the plan itself. To make a well-informed estate plan that suits you the best, you must understand certain key topics which might arise in the process:
#1: Working with a tax advisor and/or an attorney
The best way to make a fool-proof estate plan is to work with an attorney as well as a a tax advisor. While the attorney will help create the required estate planning documents (such as power of attorney, will, and health care proxy, among others) and make sure that they are durable, the tax advisor will help you resolve any tax-related issues that may arise in the process.
While it is true that you will be making the decisions, your attorney and your tax advisor can help you understand the various options and know the pros and cons of each. Additionally, they will help you communicate your needs and feelings, avoid making mistakes, reduce your taxes to as less as possible, and adjust your plans according to change in time and/or circumstances.
Remember, while hiring an attorney and a tax advisor will cost you, it is worth it when it helps you make vital savings through informed planning.
#2: Maximizing the amount that you will leave behind
If you do not plan your estate carefully, you may end up leaving a very small amount to your beneficiaries, courtesy taxes as well as the probate process.
It is therefore essential for you to get adequate tax and legal and carefully weigh how every asset will pass to your beneficiaries and to your estate. When it comes to choosing the best option, there is no one-size-fits-all, and it may vary by the asset size, type, your age, among other factors.
Furthermore, you should be well-informed on the actions you need to take to ensure that you lose as less as possible is lost to court fees, taxes, and other expenses.
#3: Gift, Estate and Inheritance taxes
Believe it or not, this is often a big part of maximizing the estate that you will leave behind. Aside the federal taxes that are levied on gifts and estates, certain states levy “inheritance” or “estate” taxes on those who stand to inherit your estate.
That said, both gift as well as estate taxes have exemption limits, and allow you to transfer up to a specific amount without paying any tax. Several make use of this exemption in order to transfer property or money while they are alive, this helps to provide maximums for their assigned receivers.
VIEW MORE RELATED CONTENT FROM OUR SITE BELOW
BEST ESTATE PLANNING TIPS FOR UNMARRIED COUPLES
In today’s day and age, marriage is not the only way for couples to stay under one roof. In fact, data from the U.S. Census Bureau says that the number of adults who live cohabit together is 29% more than what it used to be in 2007 – and over a half of this […]
Estate Planning for Wealthy Families
One of the best and most essential things a family with wealth can do to protect and grow their wealth is to create a solid financial estate plan. According to a 2014 report by Vanguard, seeking an advisor to build a financial estate plan is one of the top three services sought by affluent […]
THE BLENDED FAMILIES’ GUIDE TO ESTATE PLANNING
In today’s day and age, blended families are on the rise. While they are generally good news for both the parties involved (as well as their children, if there are any), they come with some unique changes and challenges, especially on the legal and financial front. In the case of estate planning, for instance, […]
YOUR GUIDE TO CONVERSING ABOUT ESTATE-PLANNING
While most families are open about all kinds of topics, they are reluctant to talk about some subjects, such as being death and money. For all adults – parents and children, death is a sensitive matter and is not discussed until it is visibly unavoidable. Another issue of concern is privacy around financial matters. […]
3 MUST-HAVE ESTATE-PLANNING TOOLS
Several people think that estate planning is an activity that is required only by the wealthy. This could not be farther from the truth. Everybody requires a solid estate plan, no matter what their income or net worth is. Having an estate reduces any scope of confusion, cuts all unnecessary costs, and lifts off […]