Rockville residents planning an estate for their heirs should be aware of factors that may be just as important as saving taxes. While lower inheritance taxes mean more assets are transferred to the beneficiaries, the wishes of the creator of the trust or will should also be considered.
A trust is created by a company or individual to provide for the distribution of assets within an estate. The trustee is the person, or persons, assigned to see that the funds are properly distributed upon the death of the creator. The estate plan has some flexibility when considering distribution of assets to the heirs. The new Obamacare investment income taxes may not affect recipients who fall beneath a specific income line. In that case, larger amounts can be distributed without their inheritance being subject to the new tax requirements.
Today's estate planners must also keep up with current trends and tax liabilities for their clients who are setting up trusts for their beneficiaries. A good estate plan should incorporate the personal wishes of the executor while also handling practical distribution concerns. With additional taxes now due on investment income, planners try to come up with ways to keep as much of the estate intact as possible, with the maximum amount possible ending up with the heirs unless the creator specifies differently. For example, when the beneficiaries are not of adult age when the distributions are to occur, some of the assets may be left in the trust for the future.
The financial situation of the desired heirs to be included in an estate plan will have much bearing on how the plan can be arranged. Estate planners may be helpful in executing a plan that takes care of practical tax implications along with following the personal desires of the assets' owner.