Taxation issues can quickly become complicated when it comes to estate planning. Wade Kricken, a litigator in real estate law and litigation for two decades, understands the importance of managing these issues properly. Here’s what you need to know about taxation when creating an estate plan.
Know Your State’s Tax Laws
When creating an estate plan, it’s important to understand the tax laws in your state. Each state has its own set of laws regarding taxes and estates, so make sure you understand them before making any decisions.
Additionally, it’s important to know if there are any exemptions or deductions available for you in order to reduce the amount of taxes owed by your estate upon death. Knowing this information ahead of time can help you avoid costly taxes later down the line.
Account For Taxes When Drafting Your Will
When drafting your will, it’s important to account for taxes and other financial obligations that may be due upon your death. This includes income, sales, and property taxes that may be due depending on where you live and how much money or property is being passed on from one generation to another.
Consider Hiring a Professional
If all this talk of taxation is too overwhelming for you, consider hiring a professional who specializes in tax law and estate planning. They can provide invaluable advice on how best to manage taxation issues within an estate plan as well as help ensure that all necessary documents are filed correctly with the appropriate government agencies.
A professional can also assist with asset protection strategies that may be beneficial depending on your individual circumstances—something which should never be overlooked when dealing with complex taxation matters such as these.
Creating a comprehensive and accurate estate plan can seem like a daunting task but Wade Kricken knows it doesn’t have to be overwhelming if you take the right steps now while understanding applicable tax laws as they pertain to your situation.