It’s never too soon to consider Phoenix estate planning, and for 2014 you can do a lot to prepare your estate and reduce your tax liabilities. One area of estate planning that may people overlook is that you can legally gift up to $14,000 worth of cash or assets to any individual with incurring a penalty. For those who have substantial assets over $14,000 to leave to their children, this is a way to give them part of their inheritance without subjecting it to taxes. A Phoenix estate planning professional can advise you on the best way to set this up.
Utilize the unlimited marital deduction
Another way to reduce an estates tax liability is to take advantage of the unlimited marital deduction with your Phoenix estate planning. This allows you to bequeath your estate to your spouse without having any tax penalty at all, when properly arranged with a Phoenix estate planning professional. Although an estate can be transferred to a spouse this way, it may also be preferable to set up certain assets of your estate to be inherited to your children through trusts as a part of your Phoenix estate planning process.
Create an estate plan for every situation
As a part of your Phoenix estate planning process you need to create an estate plan for as many potential scenarios as possible including an untimely death, an plan for minor children, a plan for financial emergencies and a plan for medical emergencies. There have been documented cases of previously healthy people having gone into a coma without having an estate plan with a living will and advanced medical directive. Not having these documents can make decisions regarding care and other decisions difficult.
Meet with a Phoenix estate planning professional if you need help
Planning for an ultimately death is not something that anyone likes to think about but it is important, especially for a married person or for those with children. The main thing when it comes to your Phoenix estate planning for 2014 is to create a plan for every possible circumstance and also take advantage of the ways that you can reduce your estate tax liabilities. A Phoenix estate planning professional can help you determine how you can reduce your liabilities and properly plan for 2014.