Are Your Kids Going to Receive Their Inheritance?

You have worked hard for your entire life to make sure that your kids and family are provided for. You have saved money, forgone fun activities and vacations, and made sure that you have some money saved up to pass down to your children; however, without proper planning, your kids might not see most of this. Why is this the case? You need to make sure that you have a will in place. This is where a living will lawyer can help you plan appropriately.

if you think that you can do whatever you want with your assets when you die, you are not alone. This makes sense. After all, your stuff belongs to you. Therefore, you should be able to do what you want with it, right? Sadly, this is not the case. The reality is that there are lots of ways that your inheritance could shrink rapidly. One of the most common sources of trouble is the estate tax. If your estate is too large, then every dollar over the threshold (depending on the year and your marital status) could be taxed by 50 percent. There is a reason why this is also called the death tax. Furthermore, the courts might not know what to do with your stuff when you die. This could lead your heirs to probate court if they cannot agree on who gets what, which is also an expensive process.

These are just a few of the many reasons why you need to make sure that you are prepared appropriately. Even though you have already paid capital gains taxes and income taxes on your belongings (and might believe the estate tax is a form of double taxation), these are the laws of the country. Therefore, you need to make sure that your kids get as much of their inheritance as possible. A living will helps the courts decide who gets what based on your wishes. After all, your belongings belong to you. A lawyer who specializes in this area can help you complete your living will.

In addition, a lawyer might also be able to help you avoid as much of the estate tax as possible. For example, many people don't realize that their life insurance benefits could also be subject to the estate tax even though the benefits are not paid out until after someone dies. Uncle Sam shouldn't get any more of your inheritance than is legally necessary. This is another area where a trained lawyer can help. There are several strategies that you can use to minimize the amount of money you owe with regard to the estate tax. This will make sure that your kids see as much of their inheritance as possible.