Estate planning and estate taxes can be complicated; this is why you need the help of an estate tax advice lawyer Philadelphia, PA residents can rely on from Klenk Law. You may not realize the importance of estate planning and how it can help with taxes. However, when you plan your estate properly, it can help you avoid major stressors like probate and minimize the amount of estate taxes you owe or eliminate these taxes.
If you already have an estate plan in place or considering putting an estate plan in place, it is best to speak with an attorney who can guide you through the process and help you create a plan that makes the most sense for you. Call our office now.
Documents commonly in an estate plan include a durable power of attorney, advance health care directive, revocable living trust, list of assets and beneficiaries, and more. Following guidance from an Estate Tax Advice Lawyer, a Philadelphia lawyer can help you avoid mistakes or forgetting details when establishing your estate plan. We encourage our clients to review their estate plan every five years or so or when there is a major life change. Here are just a few things to keep in mind when writing your estate plan.
When writing your estate plan, you must take an inventory of all the items you own. This includes tangible and intangible property. This may sound like a big task, and it may take some time to complete. However, by doing so, you are taking important steps towards planning a future for yourself and the legacy you will leave behind with loved ones. Items on this inventory list can include:
Your main home, vacation houses, rental properties, etc.
Obtain statements regarding your bank accounts, investment accounts, annuities, retirement accounts, and insurance policies.
Such as jewelry, collectibles, art, or anything else you want specifically passed down to someone else.
A Philadelphia, PA estate tax advice lawyer can meet with you to discuss the process of creating an estate plan and what your wishes are for the future. We can assist you as you create essential documents to see that your items are passed down to loved ones as you so wish. Two of the main documents often included in an estate plan is a will and trust. A will describes how you want assets to be distributed to dependents and beneficiaries in the event of your passing.
To make your will as strong and legally-binding as possible, it must be appropriately signed by you and signed by a witness.
A trust allows you to pick someone who will manage your assets. You can also dictate when and how the trustee will release these assets when the time comes. This may sound quite similar to a will. However, a trust won’t succumb to the probate process, which can be long and grueling for loved ones. This means that your beneficiaries or charities will receive a portion of your assets more quickly. Furthermore, these assets are not taxed like they would be if it went through probate. There are various types of trusts, so choosing the right one is crucial.
Turning to a reputable lawyer when writing your estate plan is strongly recommended.
As the saying goes, the only things we are guaranteed in this life are death and taxes. Unfortunately, these two things go together. When you have estate taxes, it means that your estate owes certain taxes and must pay certain taxes once you pass away. Depending on how much your estate is worth, the estate tax rate could be a whopping 40%. This is not the number you want. Estate Tax Advice Lawyer Philadelphia can help.
What are gift taxes?
Gift taxes, on the other hand, are taxes that are paid on gifts. This means that when assets or property are transferred from the estate owner to another party while the estate owner is still alive, taxes can be imposed. Again, not everyone will owe gift taxes. Typically if you come under a certain giving threshold, this is not something you will need to be concerned about.
What should I do if I am in jeopardy of hitting the threshold for these taxes?
The first thing you should do is seek guidance from a lawyer. Indeed, these estate taxes often miss people because their estate is not worth as much as the threshold. Your attorney can give you guidance and advice on how best to proceed.
Tax laws are never simple, and, unfortunately, they are always changing. This makes it incredibly hard to know what to do on your own. This is why it is helpful to speak with a tax advice attorney. Your Estate Tax Advice Lawyer Philadelphia can help minimize your taxes.
Want to learn more about minimizing or avoiding taxes regarding your estate? Contact a trusted estate tax advice lawyer in Philadelphia, Pennsylvania, from Klenk Law now.
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