Joseph Andolino has provided Tax Consultancy for more than 20+ Years
One of the goals of good estate planning is to reduce taxes to the bare minimum. Unless you take action, a good part of your estate could end up in the hands of the government. Establish estate planning strategies now and your family will have far less headaches later.
What type of strategies? The type required will depend on the nature of the assets to be protected. Those properties valued at $ 2 million or more frequently to establish a trust irrevocable life insurance to provide heirs sufficient funds to cover estate taxes. This type of trust requires the assistance of an estate planner qualified because once trust is established, it can not be changed.
Those with estates valued at more than $ 100,000 often establish a trust. This strategy allows for property inheritance to quickly transfer to the beneficiaries and avoid probate. Depending on the type of trust, the gift may or may not be subject to estate tax.
With or Without a Will?
When a person dies without a legal will in place, the estate must still undergo approval. This is called a “testament” of succession and requires more time to settle. An administrator of the estate must be appointed and confirmed by the court and the specific procedures followed to determine heirs. Distribution of property held in succession intestate succession is governed by state law approval.
Inheritance and estate taxes can be complicated and there are many misconceptions about what is tax-free. For more than 20 years, Joseph Andolino has been consulting in the tax arena. Always consult a tax advisor to ensure compliance and avoid late fees and penalties imposed by the IRS .