Maryland residents may be interested to hear that the will drafted by Philip Seymour Hoffman before his death may be a source of financial difficulty for his heirs. According to reports, the man's will does not provide effective measures to avoid excess taxation.
Some suggest that the mother of Hoffman's children will have to pay an estimated $11 million in estate taxes based on the reported $35 million value of his estate. In addition, one expert suggests that Hoffman could have structured his oldest son's trust more efficiently. As it stands, his son will inherit all the assets in the trust when he turns 30.
According to a report, some of that tax burden may have been avoided if he had married the woman. Also, taxes could have also been avoided if Hoffman had regularly given monetary gifts that were small enough to avoid taxation while he was alive. His son's trust could have also been structured in a way that might have avoided additional tax payments. In many cases, beneficiaries of the trusts may be given the right to choose a trustee at a certain age rather than receiving the assets outright. This allows the assets to stay protected by the provisions of the trust while leaving effective control of the financial device in the hands of the beneficiary.
Proper estate planning can make asset distribution easier and less costly after someone passes on. In the event that the deceased has a lot of money or property, it is even more important to structure the assets in such a way that avoids paying too much in taxes. An estate attorney may be able to help client setup trusts and other documents that allow for effective distribution.