Uncommon Estate Planning Tips From Your Bethesda Estate Lawyers Part 1

When done correctly, estate planning can provide you with a wide range of assurances and benefits. Estate law is complex, drawing on numerous sections of our American tax system to create a complete picture of your property. It’s important to remember that planning ahead and enacting proper strategies can help you to minimize your estate costs and tax liabilities. In addition, this full-scale approach helps to provide coverage for you and your loved ones in the event of an unexpected tragedy. JDKatz, Attorneys at Law is proud to be your team of trusted team of estate lawyers in Maryland and D.C. From wills and probate to tax advice and more, our estate planning attorneys in Bethesda are here and ready to help guide you through the complexities of our modern legal system.

Our experienced legal team is here to provide comprehensive help for your unique situation. From business structuring to criminal litigation, we do it all. Today, we’ll focus on a few estate planning strategies that can prove to be both simple and effective. When you are finished, be sure to reach out to our estate lawyers for assistance!

Life Insurance for Non-Working Spouses

The purpose of life insurance is to help protect your immediate family in the unfortunate event that one spouse passes away. When employed, life insurance is both highly recommended and very affordable. However, if one spouse is not bringing in income, a major gap can develop for covering financial responsibilities. Normally, the surviving spouse will face the difficulties of paying the full range of costs. Families in need will often hire an outside representative to help with the full scope of responsibilities. If you are married and retired, losing your significant other will result in a loss of spousal retirement benefits that are supplied by Social Security.

Our estate planning attorneys are here to help you with any gaps in your coverage. Contact us today for personalized tax and estate services!

Upstream Estate Planning

The main goal of estate planning is to ensure the continuation of your assets to future generations in a way that minimizes your tax burden. Planning ahead and creating living inheritances will help you to avoid taxes on your gifted assets. Instead of planning “downstream,” some individuals find that upstream planning can provide a number of benefits. In most cases, this involves gifting your assets “upstream” to the older generation. The basic advantage of this approach is that your gifted assets will be inherited upon the passing of your older parent. As a family inheritance, your assets may be able to be sold without a capital gains tax.

More and more, citizens are relying on this approach in cases where economic and divorce concerns are prevalent enough to take action. Another example would include investment assets, such as a major increase on the price of stocks you possess. Instead of paying the gains tax on your profit (which can range up to roughly 30 percent!), you can expect to receive your capital free of liabilities. Remember that tax law is very complex and relies on numerous factors to determine your options for avoiding steep tax responsibilities. Be sure to reach out to our Maryland tax attorneys for assistance!

Controlling Appreciated Assets to Minimize Capital Gains Liabilities

Again, proper planning can go a long way in maximizing the power of your current assets. Ordinary and long-term capital gains taxes are imposed on couples who meet a certain income restriction. In 2017, married couples whose income is less than $75,900 when combined will be expected to pay 0 percent on capital gains taxes. If your income falls far enough below this threshold after tax deductions are calculated, it may be wise to sell your assets accordingly to work beneath this cutoff.

When it comes to asset sales such as properties and other investments, couples can sell the proper amount of financial gain to stay under $75,900. If you combine for $60,000 in income with an asset that generates $15,000 a year, you can sell these gains to increase your income without reaching the capital gains minimum. This can prove very helpful down the road when compared to selling your investment entirely at cost, qualifying for a 15 percent tax. If you believe that you qualify for this strategy, our estate planning attorneys in Bethesda will be ready to help!

Next time, we’ll continue this topic by highlighting a few more underutilized strategies that many citizens can use for the best financial outcome. Estate law is very complex, and for most people, navigating its litany of rules and regulations can be very daunting. If you’re not sure about the state of your plan, or you need assistance in optimizing your tax responsibilities, our estate lawyers in Maryland are here to help. JDKatz is proud to be a trust law firm in Bethesda, delivering a wide range of legal services to help each and every client we support. Contact us today to see how we can enhance your financial future!