Estate planning is an important aspect for people that are leaving behind assets to loved ones. There are good and effective methods of estate planning, but there are also situations where no planning has been done. This can leave the people that are supposed to receive the assets in a difficult financial spot. It can also create arguments over who gets what. That’s why consulting with an Estate Planning Lawyer Nassau County NY is essential.
The first issue when speaking with an Estate Planning Lawyer Nassau County NY is determining who gets the assets that a person is leaving behind. This can easily be outlined in a last will and testament. Along with determining who gets the assets, it’s also important for an individual to name an executor to their estate. This will be a person, sometimes a family member and sometimes an attorney, that will handle the affairs of the estate after a person has passed away.
Another important thing to do is minimizing the estate’s tax burden. This can be complicated, but there are some simple things that a person can do to reduce the tax burden their family will face after their family begins to inherit assets from the estate.
One of the ways to minimize tax burdens is to start giving away assets while that person is still living. If the assets are under $13,000 in value per individual annually, these assets will be completely tax-free. In the course of a few years, a person can distribute virtually their entire estate without assessing the people receiving those assets any taxes.
In addition, if a person’s Estate Planning Lawyer Nassau County NY has determined that the beneficiaries of the estate will have a tax burden of $100,000, for example, a person can take out a life insurance policy for that amount. Since the amount paid out by life insurance is tax-free, this money can be used to pay off any estate taxes leaving the assets of the estate untouched.
There are many more aspects that need to be investigated when a person is planning their estate. With that in mind, if you would like to better understand how a person can plan their estate properly, it’s important to speak with someone from The Law Offices of Peter Morra.