With a little help from a professional, estate planning becomes less of a chore and more of an opportunity. Without a will and a plan, when a person passes away, he gets no say in how the money and assets are distributed. When there are documents outlining how the money is to be spent and actions are taken in advance to prepare, a person can avoid many common tax pitfalls. There are ways to lessen the tax burden and make sure that loved ones receive the maximum amount of money.
Lack of Plans:
Some people see estate planning as a waste of time. Instead, they choose to spend the money or give the money away. The result is that there are no funds left to be taxed when a person passes away. On the one hand, this is a great way to enjoy the money, have a good time, and instantly make a difference in the lives of loved ones.
A Living Trust:
A living trust can be set up for married couples to ensure that they avoid some of the common taxes. This type of estate planning can be down with an attorney and should be researched before entering into the agreement. In most cases, a couple will need to have at least double the federal maximum of total assets. To know more about estate planning, you can also consult los angeles lawyer.
Giving up the option to make changes to a trust makes this a permanent decision. An estate-planning attorney may give an individual or a couple this option for several reasons. By taking away some of the assets associated with estates, a person reduces that amount that can be taxed.