Many accountants advise their clients to consider estate planning. In addition to giving you the peace of mind that comes with knowing your estate and assets will be distributed according to your exact wishes, estate plans have a lot of tax benefits.
If you think this is going to be too complicated or that you simply don’t have the time to talk to an accountant, you may be surprised to learn it’s not nearly as arduous is you might think. If you have time to dedicate to researching which restaurant to order dinner from, or cost-compare various flight options for your upcoming vacation—you have time to think about estate planning.
Estate planning isn’t just for the ultra-rich
“But I’m just a normal, run-of-the mill, middle-class American,” you think. “Estate plans are for billionaires. I’m nowhere close to having that kind of money.”
This is a very—very common perception. It also couldn’t be more wrong.
First- estate plans solve a lot of problems before they arise. For example, if you plan to leave $100,000 to your granddaughter so she can use it toward college tuition costs, your estate plan can outline exactly how the money will be distributed to cover those expenses (as opposed to her simply getting a $100,000 check, which could be used to fund vacations, a new Tesla or a closet full of Jimmy Choo shoes.)
Second- estate plans can minimize the potential that your surviving heirs will engage in legal battles to help them divide your assets.
Lastly- and perhaps most importantly, setting up an estate plan can help minimize your estate’s exposure to taxation. Depending on how you set things up with your accountant, a trust can reduce, if not eliminate your estate’s federal and state tax liability. If you don’t have an estate plan, your heirs could find themselves on the hook to pay a large chunk of change to Uncle Sam.
Have questions? Call us today to get started
Getting into the full ins and outs of the tax benefits associated with establishing an estate plan can be hard to fully explain in a blog. But the good news, is that when you call our office, we’ll be happy to connect you with an expert who can help answer your questions and address your concerns.
For more information on the tax benefits associated with establishing a trust, call our office today to learn more.