Planning an estate is about having peace of mind that a person’s loved ones will be taken care of after one’s death. This is an important concern for just about everybody in Maryland or any other state. One couple, who had earned large profit from selling their business as well as investing in real estate, is currently working on their estate administration plans. The couple has been able to accumulate a net worth close to $3 million and is now looking to ensure that their intended heirs receive as much of their assets as possible.
The couple who has children is now retired and is living on the income from renting their real estate property as well as individual retirement accounts. They had been considering selling a significant portion, if not all, of their real estate properties in order to enjoy more family time as well as traveling. However, the couple found out that doing so could cause significant financial problems in the future.
Many of the potential issues that could result from selling their properties are related to tax liabilities. The money gained from selling their properties would be counted as income based upon capital gains, which means an increase in income tax liabilities. Additionally, there are various other tax problems that could occur after their deaths, which could affect their intended heirs.
However, it is necessary to understand the laws pertaining to estate administration in Maryland in order to make the correct estate planning decisions. Also, not every case will be the same, and each person will have different estate planning goals. Therefore, it is important to be able to apply the law to the specifics of each circumstance.
Source: Calaveras Enterprise, "Get motivated for estate planning", Bonnie Kuhn, May 23, 2014