Taking an individual approach to estate planning is essential when you live in Maryland. Using the right estate planning tools can help safeguard your property and distribute it in the best way possible.
Minimizing estate taxes is essential to protect your assets
While 2018 brought significant changes to the federal estate tax exemption, it can always be lowered by Congress. Knowing this might occur means it’s essential to do all you can to protect your assets. Utilizing a family limited partnership (FLP) may be one method you can use during the estate planning process to accomplish this task. Doing so allocates assets among the partners, which can be your family members. This action reduces estate taxes by lowering the book value of assets. Using an FLP can also protect your property against seizure.
Using a trust can be beneficial
While it’s important to have a will when you die, using a trust can be highly beneficial. Here are examples of the ways it can assist you:
- Lets you avoid the lengthy probate process – Creating a trust lets your wishes stay private. Keeping your family’s financial matters out of public records can be critical. You’ll likely save a fair amount of money by choosing this option as you won’t have to spend it on probate expenses.
- Using specific parameters – Setting up a trust allows you to customize your estate plan. You can include specific stipulations as to how and when your assets will be used. Designating money for college tuition or grandchildren when they turn a particular age are a few examples that can be done.
- Helpful if you become incapacitated – Illness or a severe injury can change your life quickly. If you become incapacitated, having a trust set up will ensure your assets are managed per your wishes during this challenging time.
Protecting your assets and distributing them as you see fit can be critical. Using more than a will is the best way to handle this endeavor.