Large estates run the risk of getting hit with serious tax liabilities related to federal estate taxes. Even if the estate planner wants to give his or her wealth away before death, it could trigger gift tax liabilities. However, creating a family limited partnership (FLP) could be one way to bypass many common estate-related tax liabilities.
One of the most important steps following the death of a loved one is the organization of his or her estate. Through probate proceedings, potential heirs -- as well as creditors -- will have the chance to step forward and assert their rights to receive payment for debts, and ultimately to receive their inheritances after the debts have been paid. During this probate process, the estate will need to be valued and this could involve determining the value of real estate property owned by the estate.
When a loved one or close family member passes away and leaves behind a piece of real estate, it's not always bequeathed to one individual. Sometimes, however, one family member will want to keep it and chooses to compensate the other family members for their ownership share in the property. In order to do this, the value for the property must be known.
Trusts have many uses throughout the scope of estate planning, both as proactive tools for directing your assets where you want them to go, as well as defensive tools for protecting your assets from unfair taxation or claims by outside parties. Many kinds of trusts can help you protect your assets from creditors or others who believe they have a claim to some or all of your property.
Do you know how to find out how much your estate is worth? If you want to optimize your asset protection in your estate plan, you need to understand the process of determining the value of your property in accordance with federal law. Two types of valuation exist to allow your beneficiaries the most accurate assessment of your property holdings. This could mean the difference between paying the estate taxation, which is triggered at $5.45 million as of 2016 legislation.
Proactive wealth management is an important step in securing not only your future, but also the inheritances you leave behind for your loved ones. Selection of a financial advisor is an important choice and creates a bond of trust that a skilled professional will be looking out for your best interests.
Running a family business is not for the faint of heart. You've worked hard and made difficult decisions for the best of your company and your family. Despite your best intentions, your business may still be at risk for failing.