Tax considerations are an important aspect of estate planning. This is why many people in Maryland and other states utilize trust planning strategies in order to minimize tax liabilities. However, there are times when the tax laws regulating trusts may not be exactly straightforward. This was the case in a recent court dispute involving the Internal Revenue Service (IRS) over the real estate activities of a particular trust.
People are right to worry about the future. Anything can happen that could leave a person incapacitated for a significant period of time. This is why it is important to have a plan in place in the case that this does occur in Maryland or in any other state. Including a power of attorney as part of one’s estate-planning strategy is meant to address this issue.
An individual retirement account (IRA) is a common estate-planning tool used to ensure that one has enough money for retirement years. However, many times, due to other investments or savings, people in Maryland and other states do not need the extra money from their IRAs right away. Therefore, they will avoid taking distributions from their IRAs in order to minimize their income taxes. This strategy could result in leftover money in IRAs to be left for their children during estate administration.
Many people have taken the step of drafting wills and setting up trusts to safeguard their wishes and provide for their loved ones after they have died. However, many may have overlooked the importance of designating an individual to serve as their health care power of attorney. There may be residents in Maryland who can benefit from learning more about the purpose of this decision.
There are many different legal instruments available for planning an estate. These estate planning tools have various benefits and purposes during the estate administration process in Maryland or in any other state. One of the most common goals people have in estate planning strategies is minimizing tax liability by using a trust. Many are looking toward incomplete non-grantor trusts in order to avoid the gift tax.