Estate Planning Basics
An estate is everything you own, this includes money and assets, such as a home or a car when you pass away. Estate planning is you decide who will get your money and assets. Debts are also part of the estate, anything owed to credit cards or loans will have to be paid off before the assets are distributed to the designated people.
Creating an Estate Plan
It is important to work with an attorney or tax advisor in the creation of your estate plan. An attorney will guide you through the creation of estate planning documentation, while a tax planner will advise you with any tax issues.
Ultimately the decision will be yours, but an attorney and/or a tax advisor will help you better understand the available options. They will ensure that your wishes are communicated clearly, help to avoid mistakes and provide adjustments to the plans as time passes or circumstances change.
Maximizing What Gets Left Behind and Minimizing Taxes
A big part of estate planning is thinking about how each asset will pass to each beneficiary of your estate. Different options are available depending on the type of asset, size of the asset, age, and many other factors. Having legal advice will ensure that each person gets what you want them to get.
Estate, inheritance, and gift taxes are just some of the tax implications when dealing with estate planning. Federal taxes on gifts and estates are some of the highest assessed taxes on a financial transaction, some states further add on their taxes. This is why it is important to help minimize taxes on what you leave behind.
Please reach out to the professionals at the Center for Financial, Legal, and Tax Planning, Inc., at (618) 997-3436 for more information with any questions on how we can help with your estate planning needs.