Estate planning is a very important task to take on. Many older couples and individuals put it off until a later date; however, the longer one waits the more problems that can occur. Without an estate plan there is no clear direction about what happens with money, property or items.
Estate planning in Massachusetts is especially important because there are laws that need to be followed. One of the most important details to keep in mind when estate planning is tax must be paid on the estate. The federal government tax is 37% and can go as high as 55% depending on the estate. Typically these taxes are to be paid within less than a year of the estate planners passing. This tax also must be paid in cash.
There are ways to lower the cost of estate taxes. One of the best ways to avoid such high taxes is to plan ahead. By establishing an estate plan early on individuals can use many different tax exemptions to lower the cost of estate tax. In many states there is even a certain amount of the estate that can be tax free if the planning is done early enough. The key to being exempt from estate taxes or getting a reduced rate is to plan ahead.
Since most individuals leave property and items in their estate instead of cash many people must liquidate the estate in order to pay the cash taxes that are due. One way to avoid this happening is to pay the taxes before the estate is even handed over to somebody else. Not only can this avoid liquidation and help save money on the taxes but it will also give the estate planner more peace of mind to know that everything is taken care of.
Most estate planners are older couples or older individuals that are getting to an age where they want all of their affairs in order should something ever happen. Finding a good lawyer that is experienced in handling estate planning is a great way to get started. An estate planning attorney will not only help file any paper work but they will also give you all the facts about how to plan, when to plan and what ways to carry out your estate plans. Getting organized and having a detailed plan can save time, money and stress when planning what will happen with an estate.