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Just How Important Is Estate Planning?

On Behalf of | Jan 10, 2022 | Estate Planning |

Estate planning is important; however, it can be a daunting process. The Law Office of Franklin Montero can help you sort through the process. A well-executed estate plan can make a difference in what is you leave your loved ones.

Initially, you’ll want to employ an attorney and a tax advisor. Here’s why. An attorney will guide you through creating the necessary fundamental estate planning documents, which can include a will, health care proxy, and durable power of attorney. A tax advisor can help you with your related tax issues.

While you have the final say, an attorney can guide you to think through and understand complex implications of each option that may arise. An attorney will also help you clearly communicate your wishes, and help you avoid mistakes, minimize your taxes, and adjust your plans over time or if your circumstances change.

An attorney can provide thorough, informed planning, including helping you avoid items being probated. This will save you money in the long run and will be well worth the cost.

It’s imperative to carefully plan, because taxes and the probate process can ultimately reduce what you leave your loved ones.

Throughout the entire estate planning process, keep planning in mind, because the overall goal is to obtain legal or tax advice, then think through how you’ll pass each asset on to your beneficiaries and how to handle your estate in its entirety. Your best options may vary, based on the asset type, size, your age, or other factors.

By being fully prepared now related to what actions you can take or plan, this will help you to only pay necessary costs related to taxes, court fees, and other expenses.

When it comes to estate, inheritance, and gift taxes, you’ll want to maximize what you pass on by minimizing your taxes. Paying federal taxes on gifts and estates can be among the highest assessed on any fi

While estate and gift taxes generally have exemption limits, meaning you can give up to a certain amount without incurring taxes, in an effort to maximize what your beneficiaries receive, you’ll need to use the gift tax exemption to transfer assets while still alive.

Lastly, estate and inheritance taxes are generally based on the value of your taxable estate and must be paid before the assets are distributed to your beneficiaries.

If you have estate planning questions, the Law Office of Franklin Montero is here to help! Schedule a time to discuss your options.