Couples make their estate plans together, typically. And they leave their belongings to each other, then to their children as secondary beneficiaries, in most instances.
Many states in the country do not collect an estate tax. However, Massachusetts is one of the few states that does. Estate tax laws can seem confusing at first glance, especially if you are new to estate planning. If you are starting to plan your estate in Massachusetts, it is a good idea to start by speaking with an estate planning attorney.
When you think about the legacy that you want to leave at the end of your lifetime, it is likely that you have considered leaving a portion of your estate to a certain charity. If you have contemplated this idea but up to now have refrained from taking action, it is important to know that setting up a charitable trust might be simpler than you think. In addition, it may benefit you from a tax perspective.
Taxes are imposed on almost all types of income, whether that is your paycheck from work or an inheritance from a loved one. When a person is planning their estate, they will naturally want to minimize the amount of taxes they will be liable for, because the more taxes they pay, the less there will be left to go to their beneficiaries.
If you have an estate plan or trust, you may face being audited by the IRS at some point. This should be no cause for concern, but it should mean that you take the audit very seriously and that you prepare as much as you can.
Many people think that estate planning is something to be considered when you reach retirement age. However, the best way to plan your estate is to do so throughout your lifetime. This will help you ensure that your loved ones will benefit from your wishes for them in the event of a tragedy.
When starting an estate plan, one of the first things that people realize is that it is usually best to do everything one can in order to avoid probate. Probate can be a very costly process, taking assets away from the loved ones who you want to inherit your estate. The probate process can also be very lengthy, taking months, or in complex situations, years.
Far too many people put off the process of planning their estate or creating a last will. It can be difficult and humbling to consider your own mortality. However, if you have family members that depend on you or have accrued sizable assets over the course of your adult life, failing to create an estate plan could mean losing out on an opportunity for a legacy.
It can be overwhelming to discuss the topic of death with your loved ones. It even can be difficult to discuss it with the person you are closest with, your spouse. This is a discussion that must take place if you want to protect your loved ones and their inheritance upon your death. An important part of putting together an estate plan is choosing who will be the executor in Salem.
If you've lost a loved ones for whom you were the executor of their estate, then you might be familiar with the federal government's estate tax. It's supposed to be paid when a decedent's assets get transferred to his or her heirs postmortem.