We have discussed at length on this site the importance of having an estate plan established so that your loved ones can have the added peace of mind knowing that your financial and business affairs in order. By having your legal documents and financial records organized there is a greater sense of security when it comes to planning for life after your passing. You can feel confident that your assets, property and money will go to the places that you desire.
One of the tools at the disposal of a good estate planning attorney is to establish a trust. A trust is a legal establishment that has two primary components. The first is the principle, which is all of the assets that the owner of the trust has. The second is the income, which is the money generated from the assets while in the trust. Individuals often times will establish a trust as a way to defer tax payments at the end of their life. This can be highly advantageous in your estate planning because your spouse or partner can take ownership of your assets in your estate without a large tax burden.
A common concern for many individuals when setting up a trust is how the assets in your portfolio are valued at the time of your passing. Property and other types of assets need to have an appraisal at the time the trust goes into effect. For example, if a husband and wife set up a trust that allows their assets to be included in the trust and the husband passes away the wife would assume management of the trust. After the passing all assets would need to be appraised of their value to determine a baseline of value in the trust. This step could help or harm the estate depending on how the assets have performed. The advantage of this however, is that the wife would not have to pay taxes on any realized gains from assets already in the trust.
Establishing a trust may not be for everyone however, it is a vehicle that can provide a lot of protection from capital gains and allow a measure of safety from losing any property or other type of asset at the time of passing. By having a trust in place you can ensure that your affairs are in order with great confidence.
In closing, it is important to consider all of your options when it comes to your estate planning. Whether you are a single person on modest means or a married couple who has established numerous business interests you should be proactive in planning your estate to ensure that your assets are protected. Contact us today to have an experienced Tacoma attorney on your team to help advise and counsel you with your estate planning needs.