Estate Planning
- Estate Planning Using Wills or Trusts
- Estate Planning To Minimize Taxes
- Estate Planning To Minimize Federal Gift Tax
- Estate Planning For Distribution of Assets
- Other Estate Planning Tools
Estate Planning Using Wills or Trusts
Transfers of assets, either by will or by trust, are governed largely by state law.
If a person dies without a will, administration of the estate will be governed by state intestate succession laws. These laws neither look to minimize tax liability nor do they attempt to distribute the estate as the decedent would have wished. State intestate succession laws, for example, may give only part of a decedent’s estate to his or her spouse and part to a decedent’s child, even if a decedent would have chosen to give the entire estate to his spouse.
It is important to create valid and properly constructed wills and trusts. We can help you with your estate planning to create wills and trusts that will help carry out your final wishes.
TopEstate Planning To Minimize Taxes
Estate or inheritance taxes are the taxes owed by a person’s estate or trust at the time of their death. Federal estate taxes generally apply when a U.S. citizen or resident alien dies leaving a gross estate worth more than the federal exemption amount. The federal exemption amount, and the applicable tax rate used when determining an estate’s federal tax liability, are regulated by Congress and are subject to change. Because these amounts can change over time, it is important to regularly review and update your estate plan with your attorney in order to determine whether or not your intentions can be carried out under current law.
For Federal estate tax purposes, the taxable estate includes all property that the decedent has the legal right to control or dispose of while alive, such as real estate, stocks, bonds, cash, life insurance, retirement benefits, annuities, vehicles, jewelry and other personal property. In some cases, property gifted by the decedent before death can also be taxed. State inheritance taxes may also be applicable.
TopEstate Planning To Minimize Federal Gift Tax
Federal gift taxes may apply to gifts made during a person’s lifetime. The federal gift tax exemption and the lifetime limit, known as the "unified credit," are regulated by Congress and can also change from time to time. As is the case for Federal estate tax purposes, these changes in the law make it important to regularly review and update your estate plan with your attorney.
TopEstate Planning For Distribution of Assets
A will gives the decedent the ability to distribute his assets to any beneficiary he or she desires. A poorly or improperly constructed will may prevent an asset from being distributed according to the decedent’s final wishes.
Trusts can be created separately from a will, but can also be included in the provisions of a will. If the trust is part of the will (known as a “testamentary trust”), it takes effect upon the death of the decedent. There are many types of trusts which may be drafted according to your particular needs, and we would be happy to discuss these options with you.
TopWell constructed estate plans may also contain additional documents, not just a Last Will and Testament. A Power of Attorney, for example, is a written document whereby one person (the principal) names another person (the agent) to perform certain designated acts on their behalf in regard to certain legal and financial matters. This power may become effective immediately or upon the incapacity of the principal. A Living Will is another estate planning tool that is used to state a person’s wishes regarding medical care and life-prolonging procedures in the event of a terminal illness or a persistent vegetative state. Also, an Appointment of Health Care Representative is a written document whereby a person names an agent to perform certain designated acts on their behalf relating to health care decisions. This document often gives the agent the power to declare a person as incapacitated.
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