subject: Reduce Taxes On Your Estate With Estate Planning [print this page] To minimize the taxes paid from your estate and make sure your beneficiaries get all they are entitled to, it is advisable to plan things in the right way. Estate planning is an important process that not only provides what will happen to your assets, but also in many instances reduces the taxes and other such expenses to preserve the maximum value of the estate.
It is surprisingly common for high asset individuals to fail a plan to protect their wealth from the taxes. By making appropriate plans, your intended beneficiaries can get the maximum benefits on your estate. Estate planning is necessary for more than just identifying your wishes, but also to reduce the taxes on your estate and increase its value for your loved ones.
There are various legal tools available estate planning. Even in the simplest estate plans, the client will typically make a Will, Power of Attorney, and Health Care Directive (also called Living Will). The Will itself is often the centerpiece of estate planning. Broadly speaking, it is a legal declaration in which a person (called the testator) state his or her wishes, appoints one or more individuals to handle the administration of the estate after death, and set forth such other items and appointments as may be necessary or advisable.
Any individual who has passed the age of maturity and has appropriate mental fitness is capable of making a Will, and the help of a qualified lawyer can insure that the Will is effective in meeting the makers wishes. The precise requirements vary in each jurisdiction, but there are some common requirements that can be overlooked if the Will is drafted without adequate care.
The legal creation of a Trust or Trust is typically another important part of estate planning. Under a Trust, typically one party holds assets for the benefit of another. A Trust may be created during life, or in the Will itself.
In making a Will, you will appoint one or more fiduciaries, including the fiduciary more commonly called your Executor. This term refers to the person or people who are vested with the authority of gathering the assets of the Estate and following the direction of your Will, as well as meeting the obligations imposed by law on fiduciaries.
In addition to estate planning, attorneys increasingly speak of death planning. For example, if something happens to you, would your family know how to locate your insurance policies, financial records, account passwords, and the dozens of similar items? Through planning, you can ease the burden on those who survive you.
Wherever you live in America, there are law firms that focus in the area of estate planning. An experienced law firm that meets your estate planning needs can be found through referral or research, or you can risk leaving the matter to chance. The right firm is better positioned to get the best results. For instance, there are various law firms in NJ, and New Jersey residents should select a firm with the experience and acumen to ensure successful planning for their estate.
by: Pierson Backes
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