The Finance Blogger


Estate Planning San Diego

Estate Planning San DiegoEstate planning in San Diego or really anywhere in the country, is incredibly important. If you’re planning or hoping to reduce the amount of tax that your estate will pay when you pass away. The good estate planner will help you and your family set up the estate or a trust. They will make sure that there is money for your family to carry on after you’re gone and minimize the amount of taxes that are owed to the government.

Minimize Estate Tax

They will also make sure that whatever tax you have to pay is minimized to the California State and the federal state. This is so important if you’re going to maximize the amount of money that will be available for your family. By protecting your estate from the tax man, you will help to ensure that your family and heirs will end up with enough money to live more comfortably and enjoy life better than they might otherwise be able to.

US taxpayers can save thousands or millions of dollars depending on the size of your estate by avoiding the tax penalties that come with your estate. Early transfer of money to your family maybe one way that estate recommend to avoid paying tax to the US government and the California government.

For example, your estate planning practitioner might recommend that you transfer some of your non essential assets to your family while you are still alive. There are many advantages to this approach. First of all you reduce your taxes that the estate will need to pay. You will also get to enjoy the happiness of transferring the investments or assets to your family while still alive.

Some Risk Areas About this Approach

Many seniors have transferred their assets only to have their families squander the asset which can bring a lot of grief and sadness. Secondly, if you transferred an essential asset such as a home for example. Some family members have sold the home leaving no where for the senior to live. In addition they have no money to purchase another place or to pay to rent an apartment or a place in a senior home.

Money unfortunately causes many people to do not so very nice things and your family is really no different from anyone else’s. We suggest that you transfer non essential assets to family members. By this we mean that the asset you transfer is not something that is needed to maintain your quality of life now or in the future. This approach affords some protection from a variety of issues and allows the person to live out their years in security and maintain an excellent quality of life.

Other Benefits of Estate Planning

Estate planning will also help to ensure that your assets are well invested and working for you in an efficient manner. Many seniors will have a large chunk of cash set aside for a rainy day to deal with emergencies that may occur. It is an excellent idea to have an emergency fund set up and ready for something that many occur. But this does not mean that you must have the money sitting in a bank account earning very low interest.

One senior had over $40,000 sitting in a checking account earning no interest at all just so that she had access to funds that might be needed in the future for some emergency. This is a rather large sum of money. She was convinced by a financial adviser to place this money in a laddered GIC which still does not earn a great deal of interest income, but at least it earned some.

The funds were invested in GIC’s with monthly renewals in such a manner that there was always a GIC maturing every month which was re-invested if she did not need the money for anything. This approach gave her access to her money if she needed it and allowed her to earn extra income which she was able to use to live on. While technically this is not estate planning, this is an example of how to invest wisely. The GCI’s also had beneficiaries indicated in case something were to occur to her while they were invested, which is part of estate planning.

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