The Need for Estate Planning
If you're somehow interested to plan on accumulating and conserving wealth throughout the course of your lifetime and want it to be distributed among friends, family or even favorite charities evenly and in a manner that will accomplish non-tax as well as tax related goals, then you should consider estate planning.
Simply put, estate planning is all about managing your assets both before and after death. The fact of the matter is that, if you aren't proactive for estate distribution, the government has a readymade plan for you, a plan that might cause your family to spend time in court and see substantive portion of the estate dwindling down by taxes.
On the other hand, if you start taking actions now, you will have the power and control to decide what is going to happen to your wealth. Proper and effective estate planning makes it possible for you to have a systematic method to uncover potential issues and find solutions in 7 major aspects of life before it wreaks havoc to your loved ones when you passed away. Consult Lawyer Lisa for more info!
These 7 areas include liquidity which ensures that your estate has liquid funds needed in maintaining the property, pay taxes and several other expenses that are associated in settling your state, proper disposition of assets which ensures that the right people are getting the stuff given to them at the right moment, diversify investments that ensures there is adequate income for your retirement, stabilize business value, avoiding excessive transfer costs and addresses special issues like a child who can't care for himself or herself.
Now that you know the essence of estate planning, let us talk about who needs it. Most of the time, estate planning is used by the wealthy individuals of the society but it is purely a misconception. Estate planning is not just for the rich as everyone can do it. On the other hand, if any of the said situation applies to you, then it won't be enough to set a will.
Number 1. Your assets exceeded the unified credit exemption. At the moment, federal estate, gift as well as generation skipping exemptions are around 5 million dollars.
Number 2. Combined state as well as federal income tax bracket has exceeded 15 percent.
Number 3. You have minor children, adult children or perhaps, dependent that you are expecting to have wealth of their own, a spouse that can't or won't handle securities, money or business, charitable objectives, concerns for your heirs' protection asset and so on. Get Real Estate Attorney Columbia Sc here!