Planning for the future gives Louisiana adults certain advantages in life. This includes the ability to plan for potential specific health care needs in the future and decide how to address personal property and wealth after death. It is also possible to use specific estate planning strategies to reduce taxes associated with the estate, making things simpler and easier for heirs and beneficiaries.
Important tax considerations
State, federal and estate taxes can reduce the overall size of one’s estate significantly after death. The application of certain strategies can make it more likely that one can control what happens to more of his or her wealth in the future. Some of these beneficial strategies include:
- Making charitable donations can be helpful in terms of managing estate taxes. It may be helpful to transfer some wealth to a charitable giving trust.
- Gifting is an estate planning strategy that can be very useful. It is possible to gift some wealth and assets while still alive, applying some gift tax exclusions.
- Setting up a trust allows one to set aside and protect certain assets for a specific use in the future. Assets held in a trust do not have to go through probate.
An assessment of the individual estate and one’s goals can help determine which strategies would be most useful in the individual situation.
Professional guidance is key
It is important for one to have professional guidance at every step of the estate planning process. With guidance, a Louisiana adult will be able to implement tax strategies that will allow him or her to have more control over what happens to money and property. It is also crucial to consider the potential tax implications of any choices made.