In this article, you can discover…
- The benefits of regularly updating your estate plan.
- The tax implications to consider when estate planning.
- How to properly title assets and avoid critical mistakes.
How Can Failing To Update An Estate Plan Impact My Family Financially?
Failing to update an estate plan can cost a family member extra taxes and cause money to be passed on to people you weren’t intending.
Updating beneficiary designations is especially important. For example, if you were divorced and then remarried, but didn’t update your estate plans to remove your ex-wife and include your new wife. When you passed away, your ex-wife would inherit your assets, and your new wife would have nothing, not even enough for a funeral.
Updating your estate plans helps you adjust beneficiaries according to changing family situations, relationships, and your wishes.
How Can Improper Tax Planning Affect The Inheritance My Family Receives?
Income taxes and estate taxes are going to be your family’s main concerns.
For example, if you’re collecting income through a rental property, reporting that income on your personal tax return can cause taxes to be quite high. Instead, you can set up a trust for this property. This allows taxes on that property to come across to you on a personal K-1 account, lowering taxes.
An ABC trust can also help protect against estate taxes. Right now, you have to be with $11.5 million or more to be impacted by estate taxes, though those numbers could be lowered as laws change. Without a trust, immediate heirs would be taxed significantly.
An ABC trust, however, spreads that taxation out over multiple generations, lowering the burden for your immediate beneficiaries.
How Can Neglecting To Plan For Long-Term Care Expenses Impact My Family’s Finances?
Neglecting to plan for your long-term care as an older adult could devastate your family’s finances. The best way to address this concern is to get good long-term care insurance, which will pay for a quality nursing home, medical expenses, travel, and personal care expenses.
Attorney David Greene is a veteran estate planning attorney serving South Carolina. For over 45 years, he’s helped clients just like you save their families significant amounts of money through careful estate planning, allowing wealth to be passed on much more efficiently.
Have questions about estate planning? Reach out to The Greene Law Firm, P.A. at (864) 271-7940 for a free initial consultation today.
The premiums you pay on this insurance will be far, far lower than what your family would pay caring for you or for your spouse.
If you choose not to buy long-term care insurance, set aside a sum in your trust to be used exclusively for that purpose. This trust can earn interest and be available to pay for long-term care costs.
How Might Improper Titling Of Assets Cause Financial Complications In Estate Planning?
If you have a trust, all assets should be entitled in the name of your trust. If the assets or property are in your name instead of the trust’s, those assets will go through probate, a lengthy and expensive process that could cost your heirs significantly in terms of fees.
The best thing to do is to have a family trust and entitle assets to this trust, helping your loved ones avoid probate and holding on to more of the family’s wealth.
What Are The Best Practices For Ensuring Proper Asset Titling To Avoid Costly Mistakes?
The best thing to do is work with an estate planning attorney who knows the best forms to use for what you are trying to accomplish with your various assets.
A knowledgeable estate planning attorney can help you express your wishes through the appropriate legal paperwork and ensure that your family’s assets are protected and passed on according to your intentions. An attorney can also save your loved ones from hefty taxation, fees, and other drains on the assets you wish to leave them.
Still Have Questions? Ready To Get Started?
For more information on Estate Planning, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.
Attorney David Greene is a veteran estate planning attorney serving South Carolina. For over 45 years, he’s helped clients just like you save their families significant amounts of money through careful estate planning, allowing wealth to be passed on much more efficiently.
Have questions about estate planning? Reach out to The Greene Law Firm, P.A. at (864) 271-7940 for a free initial consultation today.