Do You Know Everything You Need to Know about Estate and Tax Planning?

There’s a lot of information involved when it comes to estate and tax planning. It may seem like a simple process there are actually many laws involved where estate and tax planning in Connecticut are concerned. Anything from your marital status to your age and how many heirs you have can influence your planning. This is especially true for estate tax planning. For example if you’re currently single you can retain up to $5.45 million worth of assets before any of your heirs are expected to pay estate taxes. This makes it seem like only the wealthy need to worry about estate planning. Nothing is further from the truth.

Can You Handle the Step-Up in Basis?

The amount of assets, including second homes and investment property, valued and taxed after the death of a loved one are used to configure how taxes are imposed against traditional 401(k)s and IRAs that are inherited by individuals other than their remaining spouse. All of this information can be confusing especially if you aren’t an estate attorney. The most beneficial way to sort through such complex issues is with an estate attorney. They can provide you with all of the necessary information you need. Consider asking them about other strategies that may help, as well.

Inquire about Savvy Estate Planning Strategies

One of the most obvious steps when it comes to estate planning is having a will drawn up. Of course it is always a good idea to speak with an attorney that can assist you in drawing up a will that will perfectly fit in with any estate planning that also needs to be accomplished. A will keep your estate from being caught up in probate court. You should also inquire about whether setting up a trust is something that is necessary in your particular case, or whether you should convert your traditional retirement account to a Roth account. An experienced estate and tax planning attorney can confidently answer all of these questions for you.

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Author: Myrtice Lovett

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