While estate planning is something that the wealthy tend to participate in, it doesn’t take wealth in order to do this. Estate planning for someone who isn’t rich may be a bit different than for somebody who is wealthy, but there are some principles that apply regardless of a person’s financial station in life. Typically when a person consults with an estate planning attorney in Azle TX, the most important thing is making sure the right people get the right inheritance with the lowest tax obligation possible.
A good way to ensure that a beneficiary gets what is desired is to delineate this in the will. It’s also important to update this will when changes occur over the years. Whether it’s changing the beneficiary status of an ex-spouse or including grandchildren into the will, keeping it up-to-date is a great way to ensure that someone’s desires for their beneficiaries are followed to the letter.
The next thing is taxes and this can be a difficult situation. There are some estates that simply don’t rise to the financial level where heavy taxation is going to be an issue. However, if a person is concerned that their beneficiaries may have to pay taxes, there are some ways to mitigate this situation.
One way is to ensure that any monetary inheritance is free of tax burdens is to specify that the beneficiary get the financial inheritance in a way other than cash. For example, IRA accounts and life insurance beneficiaries enjoy tax-free status.
Another option that an estate planning attorney in Azle TX might recommend is getting a head start on disseminating inheritances to the specified beneficiaries before a person passes away. In these instances, a person is able to gift up to $13,000 per beneficiary per year without there being any tax burden to the individual disseminating the inheritance or the individual receiving the money.
There are many other situations that can help lighten the tax burden of your beneficiaries after your death. If this is important to you, it’s important to speak with an estate planning attorney as soon as possible. These attorneys can help you create or legally amend an existing will, and they can help your beneficiaries to avoid the tax burdens brought on by large inheritances.
