Working with an attorney or tax advisor
by Admin
Posted on 07-06-2024 03:21 PM
It's important to work with an attorney and possibly a tax advisor on your estate plan. The attorney's role will include guiding you through the creation of fundamental
estate planning
documents. These may include a will , health care proxy , and durable power of attorney.
The tax advisor can help you with any associated tax issues. You'll make the decisions, but your attorney and tax advisor can help you think through and understand the sometimes complex implications of each option. They will also help you communicate your wishes clearly, avoid mistakes, minimize taxes, and adjust your plans as time goes by or your circumstances change.
Talk with a financial advisor about your estate planning goals. He or she can provide referrals to local estate planning attorneys. Trust services available through banking and trust affiliates in addition to non-affiliated companies of wells fargo advisors. Wells fargo advisors and its affiliates do not provide tax or legal advice. Please consult with your tax and/or legal advisors before taking any action that may have tax and/or legal consequences.
Estate, inheritance, and gift taxes
Taxes can take an alarming percentage of what you leave to your beneficiaries, but you can limit what taxes your estate pays in a few ways. Each state has its own tax laws, so your obligation will depend on where you live.
While financial and tax planners are best equipped to advise you on these matters, you should consider a few types of taxes when organizing your affairs: estate, inheritance, and gift taxes.
When tax laws change, review your portfolio to see how it might be affected. Arming yourself with an effective tax strategy can help you avoid costly mistakes that could eat into your estate. Your strategy could include: planning for state estate taxes. In addition to the federal estate tax, several states levy their own estate and inheritance taxes. For instance, 12 states and the district of columbia have a state estate tax, and 6 states have an inheritance tax. As of 2024, maryland is the only state that levies both. While estate taxes are only collected from a small percentage of extremely wealthy families (assets that exceed $13.
The Basics of Estate Planning
Learn everything you need to know about estate planning including what it is, getting started & the basics of estate planning in this guide by trust & will!.
Our estate planning services begin with a thorough understanding of what you will need and your goals. Then we help you designate beneficiaries, decide how assets will be held (type of trust), how those assets will be disbursed (over time, through a trustee, in a special trust), specify directions for care, establish goals for the life of child in terms of financial support and guidance from others. To lead our clients through this process, we have developed an estate planning worksheet. This worksheet will you prepare for our first meeting, making it easier to share your goals and concerns.
To arrange for the transfer of your property to your beneficiaries after you die, you must use one or some combination of various legal devices. The two most popular are wills and living trusts. Deciding which transfer devices are best for you is the main technical aspect of basic estate planning, and it’s where law and legal documents come into play. Some people with complex family situations or complicated business holdings may need a lawyer to help them figure out what kind of estate planning they need. However, with help from this book, many people will be able to determine which device or combination of devices is best for them, without hiring a lawyer.
Even if you can’t afford a comprehensive estate plan, you can start with a simple, affordable plan such as a will, trust, power of attorney, and term life insurance with plans to reassess the platform later as your financial situation changes. An experienced estate planning lawyer can help you plan your estate; they will look into your financial situation, family needs and advise on a suitable plan. They will also help with the preparation of documents to protect your assets against taxes and lawsuits. These include titles, last will and testament, power of attorney, advance directives, and living will and trusts.