Nobody likes to think about their death or what will happen with their property or the taxes that will be owed. However, any responsible individual will take the following tax tips into consideration when it comes to estate planning. One of the most important things to consider is a living trust so that upon your death estate taxes will be minimized.
Arizona estate planning lawyers can help you take taxes into consideration when it comes to estate planning and show you the best way to reduce taxes and leave more for your family. When you speak with your lawyer you will learn that the whole point, in most cases anyway, is to reduce taxes or eliminate them if possible. A tax called the Unified Gift and Estate Tax is imposed on your property when it is to be transferred to your heirs.
Congress has changed the gift tax laws several times and they may do so again. The last change was in 2001 when the laws were overhauled significantly. Certain individuals are subject to more taxes than others. There are some individuals whose estate will fall under the government’s exemption and these individuals do not need to be concerned with the estate tax. However those whose estates don’t fall under the exemption will leave the burden of the estate tax on the estate within nine months.
Too many people believe mistakenly that their estate will not owe any taxes so they do not go to any extremes to avoid paying the estate taxes. The problem here is that too many estates are valued at or above the exemption rate without the owner actually knowing it. As a result the value of your estate must be carefully determined in order to know whether or not taxes will be owed.
In order to determine your estate’s value you must consider all of your property. This includes vehicles, cash, real estate, investments, personal property, retirement assets, life insurance proceeds, business interests, and more. Once the value is calculated it is frequently higher than one originally imagined and the estate is liable for estate taxes.
Now that you know how your estate’s value will be calculated you are better prepared to start making arrangements to avoid as many taxes as possible and leave your heirs with as much of your property as possible. A good lawyer can help you plan your estate and structure investments and the like so that it benefits those you love in the best possible way. Many times taxes are inevitable but you can reduce them as much as possible simply by getting a little tax and estate planning help.