Estate Planning

The maximum tax bracket for estate planning is 45%. This makes estate planning a must. A proper estate plan is a complicated mixture of legal documents and financial tools that achieves the end goal of lowering estate tax. These products and documents may be included in a proper estate plan. (Disclaimer: HBA is not a law firm and is not giving legal advice; we recommend that you seek the advice of your attorney or legal professional)

The Will- these legal documents express what a person wishes in terms of distributing property or guardianship after death. Part of estate planning ensures the continuation of a person's estate and wills are one of the tools used to accomplish this. Wills simplify ownership for a person's heirs. In the absence of a will, the distribution of property may become state property.

Life Insurance- Life Insurance can be a great estate planning tool. One of the most important aspects is that it provides liquidity through the probate process. During the probate process when there are many assets involved, cash can be a problem because an estate usually deals with assets not cash. Some assets may have to be sold in order to keep others. Life Insurance offers this liquidity so the sale of an asset is not needed. Life insurance can also be put in a trust. If placed in trust the proceeds from life insurance bypass estate tax. This is a great way to get cash to your heirs and lower your taxable estate

Trusts- Trusts can be a great way to transfer assets in the estate planning process. They are a very useful tool for giving to charities, holding assets for minors and many other financial planning aspects.

Family Limited Partnerships- A family limited partnership is a limited partnership that can be used to transfer business interests to family members. They are great for estate planning because they can receive a large valuation discount. This allows individuals to transfer larger amounts of assets to family members without paying gift tax.

Gifting- Gifting can be complicated but it can also save you thousands if not millions in estate taxes. If you have estate tax problems gifting can be one of your best options to lower taxes.