Individuals with a high net worth in Louisiana will want to be cautious when preparing their estate plans. Your choices can help your heirs receive more and help your estate pay out less in taxes.
Protecting inheritances for heirs
Depending on how you structure your estate plan, your heirs may have to pay more or less tax. You can also take advantage of the gift tax laws to give them some assets while you are still alive.
Minimizing estate taxes
In addition to giving away your assets while you are still alive, you can further minimize estate taxes by setting up an irrevocable life insurance trust. In other cases, people with a high net worth will want to consider creating a limited family partnership, which owns the family business or income-generating properties. Sometimes, using a generation-skipping trust to pass on assets to people in lower tax brackets is a great idea.
Avoiding the probate process
Creating a living trust keeps your estate from going through the probate process. Therefore, it is often cheaper at the time of your death, and your heirs can get their assets faster. It also keeps your estate private while the probate process makes information more public.
Appointing the right trustee
You want to choose a trustee with the experience to handle your affairs. If you find the right individual, you can put assets into an irrevocable trust they manage. This may make it possible to title assets in the trust’s name instead of an individual’s.
You should be proactive in your estate planning if you own many assets. It can affect the amount of assets left to your heirs instead of paid out in taxes.