Estate Planning Is One Of The Only Ways To Protect Your Assets
Protecting your assets through estate planning is one of the only ways that you can protect your wealth and ensure that it is passed down in the way that you want it to be. Estate planning can also help the individuals who are inheriting your estate avoid or reduce the amount of taxes that may be owed throughout the probate process. Working with an estate planning attorney through this process will also make planning your inheritance easy and less stressful. At Taneff Law, we will work with you to create a stress-free plan for your estate. We will carefully construct an estate plan that not only protects you, but also your family and friends when it comes time to put your plan into action. Our solutions to coming up with an estate plan catered to you will set you up for success.
Create A Will, Trust, And Other Beneficiary Delegations
Specifying exactly how you want your estate to be distributed is the first step in planning your estate. Listing out the beneficiaries of your estate in a legal document will help your attorney and the state understand how to allocate your belongings after you pass. Doing so will help avoid your estate from going into probate where a court will decide how your assets will be allocated. Not having a written plan can be a very expensive mistake. Going through the probate process is expensive and can be a lengthy legal process. Having something like a living trust will allow your beneficiaries to receive your estate directly and not have to get help in obtaining your property and paying legal fees to do so.
Have A Trustee And A Power Of Attorney
In addition to having a trustee to help make decisions on your behalf for an irrevocable trust, it is also important to consider having a Power of Attorney. A Power of Attorney is someone who you have chosen to be responsible of making decisions on your behalf if you are unable to do so. They can make financial and medical decisions if you are incapacitated and can ensure that your family isn’t burdened with the difficult decisions that come during a time such as this.
A Plan Can Minimize Taxes And Other Expenses
In addition to avoiding probate fees, proper estate planning can help your beneficiaries reduce the amount of estate taxes that they owe. Doing this will help your family members get the most of your estate. This will help protect your assets and ensure that the money intended for your family is actually given to them.
Inform Your Family And Friends Of Your Plan
It is important to consider letting your family and friends know of your end-of-life plans. Letting certain individuals know about your wishes and all the preparation that you have taken to ensure their safety from taxes or other inconveniences can help put everyone at ease. When the times does come that they will need to deal with your assets, they will be familiar with your wishes and plan. They will be more comfortable working with your attorney, trustee, financial advisor, or power of attorney. Less surprises during this time will allow your loved ones to focus on their love for you and not the stress that comes with dealing with an estate.
What Types Of Taxes Can Be A Threat To Your Assets?
There are three main types of taxes that are typically applied to an estate. Capital Gains, Estate, and Inheritances Taxes are all things to consider when you estate plan. Each of these taxes plays a different role when your estate is passed to your beneficiaries and there are ways to minimize the amount of taxes they will end up having to pay.
Capital Gains
Capital gains tax may be applied when there is a sale of an asset. Your beneficiaries may have to pay capital gains tax on some items if they choose to sell them. Things like a car, stocks, or a home may be subject to capital gains tax if a beneficiary decides to sell after inheriting.
Estate Tax
Estate taxes may be applied to your right to transfer property at the time of your death. There may be federal estate taxes. This tax is paid by your estate before an asset is distributed to your beneficiaries. Using strategies such as trusts and gifting strategies can help minimize the amount of taxes placed on your estate. The government imposes estate taxes to estates that exceed a certain exemption threshold. This amount changes year after year and it is applicable at the time when your estate is to be passed to your beneficiaries.
Inheritance
Inheritance tax is the responsibility of the beneficiary that has inherited money or property from your estate. It is to be paid by the beneficiary after they have receive your assets. Inheritance taxes are regulated on a state level. It is important to note that there are some states that do not have inheritance taxes. Ohio does not have an inheritance tax. The states that do have inheritance taxes are in control of the amounts and rates.
Protect Your Assets From Creditors
Placing your assets in trusts for your beneficiaries can help them in the long run. If you place your assets into an irrevocable trust, the assets are transferred out of your personal ownership and into the trust. This trust is managed by a trustee and the original owner has little to no control over these assets. Since these assets will technically no longer be owned by you, they are out of reach from a bank, creditors, lawsuits, debt collections, and other financial claims. If you are facing personal debt, bankruptcy, or other legal issues, the assets in your irrevocable trusts are usually protected and ensured to go to your beneficiaries without any issues. This type of trust can also be an insurance that helps protect your beneficiaries. If one of your beneficiaries becomes involved in a lawsuit, divorce, or debt, the assets that they gained through your trust will be safeguarded from these claims.
Taneff Law Will Carefully Prepare Your Estate
Taneff has been committed to helping individuals and families in Columbus since 1989. We have the knowledge and experience to help you prepare a thorough estate plan that will leave you at ease. We will work with you to find a plan that works best for you and your family. Understanding the estate planning process can be very confusing. We will work with you every step of the way and make sure we protect you and your estate to the best of our abilities. Our effective estate planning has helped many families and individuals minimize estate tax and avoid fees that may be come without our help. Our strategies and resources start with you center front in our minds. We understand that each family’s needs are unique. Working with a Taneff estate planning attorney is special because we will cater to you and make a customized plan based on your wishes. Whether you are in retirement or planning for your future ahead of time, let us show you how you can protect your family and your assets today.
Give Us A Call Today!
Call us today to schedule an initial consultation with an advisor! We would love to hear from you and learn how Taneff can assist you. We are ready give you the tools you need to protect your wealth for your children, family and your future generations.