Understandably, people generally do not like to consider the end of their life, let alone plan for it. However, it is always better to be prepared than to not be prepared for the inevitable. Fortunately, you can do so through the creation of a comprehensive estate plan. When you live a long life, it usually comes with a collection of cherished assets. Sometimes, these assets are of high net worth. These must be taken care of. In doing so, you can benefit from the assistance of an experienced Pennsylvania estate planning attorney who has helped individuals just like you for years.
Can a High Net Worth Minimize Estate Taxes?
Estate plans are taxed in different ways. Wealth transfer taxes can include estate taxes, generation-skipping taxes, and gift taxes. There is a federal tax that is imposed on the plan. This is 40% of what they are measuring with up to $5.6 million as tax-exempt. This means that the first $5.6 million is exempt from being taxed, but then there is a 40% tax on the estate after that amount. This rule goes for both gift taxes and the estate tax. It is important to know that generation-skipping transfer taxes do not begin until the assets are given to a child or great-grandchild.
Planning for Incapacitation
Many people face situations in life where they become incapacitated and cannot take care of themselves. This may lead to them being unable to manage their work, finances, personal affairs, etc. You need to prepare for this chance instead of finding yourself unprepared if you become incapacitated. There are different ways this can be done, including appointing a Durable Power of Attorney to manage your assets and a Healthcare Power of Attorney to make key medical decisions on your behalf. Additionally, you can create a will to set guidelines for possible life or death treatment. You may also wish to appoint a guardian if you have children who are under the age of 18.
Can I Avoid Probate?
People who have a high net worth can benefit from creating a living trust. This can avoid going through probate since the trust is not in their own name. When considering trusts, a revocable trust can be created so that the individual can amend or revoke it at any time they choose.
Contact our Firm
Friedman Schuman is an experienced and dedicated legal resource for clients throughout Pennsylvania. We proudly serve clients facing a wide range of legal matters. If you require the services of an effective attorney, please contact Friedman Schuman today to schedule a consultation.