|
Author: Nicole Soltau Article source: http://www.about-estate-planning.info/. Used with author's permission.
One of the most important considerations you will need to make in regards to your real estate holdings and your estate includes tax planning. If not handled properly, your estate could end up getting hit with significant losses due to taxes after your demise. To protect yourself and your estate against this possibility, it's important to plan for your real estate with estate planning.
First, it's important to understand exactly what estate planning is and what it is not. Estate planning goes far beyond the simple drafting of a will. In essence, an estate is the total property, both real and personal, that is owned by an individual prior to distribution through a trust or a will. The act of planning your estate involves distribution of the real and personal property to your heirs, taking into consideration all the applicable laws, regulations and possible tax considerations.
The goal of estate planning is to preserve the most amount of your wealth possible for the intended beneficiaries; prior to your death. Due consideration of this must be entered into in order to avoid penalties related to certain Federal and State tax laws. Otherwise the property and wealth that you struggled to earn and obtain during your lifetime could easily be lost to the ravages of poor estate planning after your death instead of benefiting your heirs as you intended.
Wills and trusts are two instruments which are commonly used in estate planning. They have different purposes and very different outcomes, however. Wills are subject to probate court and if they are contested; the result can be a length and costly legal battle. In some cases, the majority of an estate has been whittled away the costs associated with a contested will. It is possible in some situations to avoid probate through the use of a trust and therefore avoid the risk of a long drawn out and expensive legal battle. A trust is used when property is held by one or more persons for the benefit of one or more other persons known as beneficiaries. The holder may be a separate trustee or a beneficiary. A trust is commonly used when there are minor children as heirs; although it could be used for other purposes. Other considerations to avoid possible negative tax impacts on you real estate include lifetime gifts and gifts made while you are still alive.
In some cases you may find that charitable gift contributions are a good way to go because you can take advantage of immediate tax savings as well as future tax savings. Under some circumstances you may be able to avoid the capital gains tax you would accrue if you sold a property as well as take an income tax charitable deduction for the property's full market value when you use it to make an outright gift. Since the property will be removed from you estate, this will also provide future tax savings. Some individuals also choose to plan for their real estate by generating income through a charitable remainder in order to receive income either for life or during a specified term of years.
If you own real estate it is critical that you take care of it with carefully crafted estate planning early on. This can help you to anticipate economic changes without being hit with severe economic impacts later on. Nicole Soltau is the President and Founder of CreditUnionRate.com.
The Leading Credit Union Directory.
Search, Find, Join.
http://CreditUnionRate.com
Christmas Gift Ideas: Interior Décor Presents
Have you ever received a home décor present that didn't fit in your home? Choosing a gift for someone to display in their home can be frustrating. On the other ...
Hire A Dream Coach to Find & Fulfill Your Dreams
Coaching is an ongoing professional relationship that helps people produce extraordinary results in their lives, careers, businesses or organizations.
A Few Things About Value Investing
Value investing is the act of investors selecting stocks based upon a perceived value rather than solely looking at pricing trends in the stock's history.
Church Retreat and Church Retreats
Church retreats are an excellent way to involve the church in an important part of church involvement. Offering a church retreat creates community and support w...
Top 3 Strategies to Boost Your Perceived Value
Three ways to boost your perceived value are: deliver unexpected value, ensure your client's success and toot your own horn. Learn steps in how to do all three...
People are Turning to Meaningful Songs for Emotional and Spiritual Relief:
A New Breed of Aspiring Songwriters Is In The Making. What are the Sacrifices of the Solo Singer Songwriter in Today's Changing Culture?
Joint Custody: 10 Strategies for Co-Parenting with an Uncooperative Ex
Many single parents are sharing custody of their children with angry, bitter or wounded exes. This article shares 10 practical and easily implemented strategie...
Acting on Your Creativity
Creativity is an exploration of our psyche, our inner selves; it isn't just about being identified as an "artist" producing a "work of art." Creativity can flou...
Be Friendly to Search Engines
The object of search engines is to give their visitors a list of web pages relevant to the search words, in the order of relevance to the search words. So what ...
How to Beat Roulette with A Simple 3 Point System
Many players try to beat roulette by buying a "sure fire" roulette system for money. These systems promise consistent gains and to make the buyer rich and beat ...
New Developments Make Christian Life Coaching “The” Career Choice for Work-At-Home Professionals
If you want to earn a substantial professional income, help others while working from home, spend more time with your family or leisure activities, then Christi...
Acupuncture Arthritis Treatment – Using Acupuncture to Treat Arthritis
Acupuncture treatment of arthritis pain can result in powerful arthritis pain relief and it can provide an alternative arthritis remedy for many pain sufferers....
What Can You Do In One Day
With the Lord a day is like a thousand years, and a thousand years are like a day. What can I do in one day or a thousand years? I can be Holy in Jesus sight w...
A Simple Technique to Remember Grocery Items
Have you ever left the grocery store and said, "Whoops, I forgot one recipe ingredient"? Or, "Whoops, I forgot to use my coupon"? Or even while in the store, "W...
Atkins Diet – Simple Advice
Just like any other diet, the Atkins diet can become boring and for some very dangerous. Before you get into the plan make sure you get a physical and talk to y...
A Few IT Security Tips for Small Business
A brief guide for protecting your digital assets from theft and misuse. This guide covers the 8 things every business should do to protect thier digital assets.
Principles That Govern My Life
The strength and durability of a building is found in its foundation. The same is true in a life. What we accomplish and the effect we have on those around us i...
What to Do if the Baby Shower Guests Dont Know Each Other
A baby shower is a simple celebration of family and friends to celebrate the upcoming birth of a new baby. It is a great tradition around the world in many reli...
10 Reasons To Buy Drugs From An Online Canadian Pharmacy
Online Canadian pharmacies offer overall best prices on Canadian drugs, as well as on international drugs. This is due to the fact that there are many online Ca...
Tell Me a Story: A Simple But Powerful Tool to Build Your Business
Everyone loves a good story. Whether it's the story of your vacation to an exotic place, the story of how you met your spouse, or the story of your small busine...
Acne in Laymans Terms
Martin Bevon's article "Acne in Layman's Terms " explains in detail everything to do with the causes of acne.
Ultralight Backpacking Skills - A Three Day Test
Ultralight backpacking has made all my trips more enjoyable. This trip was just to test some techniques and gear.
Beyond Repair: The Fixed-price Model
I certainly don't think the majority of vendors who use a fixed-price model are trying to rip you off. In fact, when I started my business that's the way we wor...
How to Turn a Job Search into a Career Find
Ever watch a hamster running mindlessly on a wheel and think "Yeah that about sums up my job search?" There is a better way to uncover a great career with more ...
|
Print this page