Estate taxes can put a massive dent in the assets you plan to transfer to your loved ones after you pass. If you don’t plan ahead, your loved ones may end up only getting minute portion of what you wish that they receive because of estate taxes. This is where estate planning techniques come in.
Fortunately, you can take steps now to reduce your taxes after you pass, allowing your loved ones to get the most out of the legacy that you have left for them.
What is Estate Planning?
Though common, not everyone knows what the term estate planning is. And this is because a huge percentage of people don’t see the importance in planning an estate. Estate planning is simply a plan an individual makes while alive for the management, distribution, and or disposal of their assets during their lifetime of after their demise.
Types of assets that can comprise of an individual estate include real properties (like buildings and lands), intellectual properties, cars, insurance, shares and stocks, banks accounts, including other personal properties.
It is very important that you contact an estate planning attorney and plan your estate as failure to do so may not necessarily affect you, but your family and those you care about. And this is because when you kick the bucket and you do so without a will, your assets will be shared based on the intestate laws of Long Island.
What will happen if you fail to plan you estate?
Failure to plan your estate can be very terrible. The effect it’ll have on your loved one may last for a while. That is why you see most wealthy individuals ensuing that they plan their estate in time because no one knows when he or she could kick the bucket.
If you fail to plan your estate, the following may occur:
- Your loved ones may a little portion of your estate. Or in the worst case scenario, they may not get anything.
- All that you have worked for will be shared based on the intestate law of your sate. That is, the government of your state will dictate how your estate is to be shared or distributed.
- Your estate will likely enter probate which is a very challenging process that could cost your family and loved ones lots of money and time.
- If you becomes incapacitated, you won’t have a say over who will cater to your medical, and financial needs.
How can I reduce or avoid estate taxes?
You can take a few steps to reduce your estate taxes now, long before your estate undergoes probate. Strategic planning by using the combination of trust, tactical account creation, including maintenance, giving tactics, and additional hints will help you lessen the total tax that your loved ones will have to pay out of your estate.
Create a Will
You may not immediately think of this simple estate planning too when you begin planning on how to reduce estate taxes. But, when used appropriately, a will can be the jumping-off point to help with effective estate planning to reduce or prevent estate taxes together.
Other ways to reduce or eliminate estate taxes are:
- Setting up a life insurance
- Setting up a trust
Need an estate planning attorney?
Planning an estate can be a complicated process. It involves a lot of paperwork and legal documents like power of attorney, trust, will, etc. Thus, if you want to plan your estate the right way, it is important that you contact a professional.
An estate planning attorney can help you in several ways. This professional can help you plan your estate and help you create the necessary estate planning documents. If you need to update your estate plan, this professional can be of help as well. Also, if you have concerns or questions, contacting an estate planning attorney is the best way to find answers.
We boast of competent estate planning attorneys who can help you navigate the tough estate planning process. Simple get in touch with our office so we can offer you or your loved ones our professional services.