- September 23, 2016
- Posted by: Smith & Smith
- Category: Estate Planning for Individuals, Uncategorized
The future is veiled to us and we can never predict what might happen. So how do you facilitate the management and transfer of your property in your absence? Estate planning presents the perfect solution. If you are a resident of the Dallas Fort Worth area, you can get a CPA in Arlington to handle all your estate planning needs.
Estate planning ensures that you have a clear idea on how to organize and safeguard your property. You can get a CPA to define your estate goals and give you a comprehensive idea on how to manage your estate.
An overview on Estate Planning
It is your responsibility as owner of your property to make sure that your current wills, trusts, healthcare and attorney privileges are in order. It is also important to ensure that your assets are kept that way which is possible with proper management. Estate planning also involves facilitating the transfer of your property to respective heirs as per your directive. A professional can also help you manage your estate on your behalf in case you are incapacitated or away.
Strategies you can employ
There are strategies that can help you with proper estate planning which will help you keep your property and assets in order.
- You need to make a will that specifies the transfer of your assets to an heir. If the will is absent, the state will determine your heir which is usually the closest living relative.
- A living will includes life-saving medical procedures that you want or don’t want in situations where you may be physically or mentally incapacitated. It is facilitated by an attorney with Medical power privileges.
- A CPA can help you set up an irrevocable life insurance trust. The proceeds of a life insurance policy that is held in your estate have an estate tax imposed unless the policy is owned by an irrevocable trust, in which case, the proceeds will not be included in your estate. Your CPA can advise you best on the matter.
- You also have the option to transfer the property to the Charitable Remainder Trust to receive an immediate income-tax deduction. This will also help you avoid any capital gains taxes on donated appreciated property. You can then receive an income stream that is generated by the trust assets for a specified period of time or for life. The charitable organization will inherit the trust assets after that period has ended.
Fate of the owned property
When a person dies, the properties that were owned by the deceased are taxed. The properties will be sold at fair market value on the day of death. The difference between the value of the property and the original price paid is called the capital gain and needs to be declared to the tax department. You can consult with a CPA to effectively conduct your estate planning and secure the future in Arlington of your property.