If you are getting divorced or the ink has just dried on your divorce agreements, it's time you thought about your estate planning documents. Oftentimes, people forget to think about their will, trusts or other estate planning instruments because they are so caught up in their divorce proceedings.
Estate planning doesn't have to be like the movies, where an individual on his or her deathbed might scratch out final wishes on a scrap of paper. Yet a surprising number of Americans continue to pass without having an estate plan in place.
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.
It is a good idea to have a clear overall strategy when making estate planning decisions. This strategy should play a role when making decisions regarding forming a trust in Maryland or elsewhere. This strategy should consider the questions of who, what and why.
Everybody in society needs to pay their fair share; however, nobody wants to pay more taxes than they need to. Bill and Hillary Clinton seem to have taken this approach in their political positions and their personal estate administration plans. As many in Maryland may remember, the Clintons have been strong supporters of legislation to raise the estate tax. On the other hand, the Clintons’ estate planning strategies show they are doing whatever they can to avoid having to pay estate taxes themselves through the use of trust planning.
The United States legal system can be quite complicated at times, especially when it comes to jurisdiction. First, there is Federal law and then each state also has their own laws. This can create some ambiguity when it comes to taxation rules, which becomes especially relevant when planning an estate in Maryland or in any other state. If the beneficiary to a trust decides to move to another state, this could have significant taxation ramifications, which one should keep in mind.