Tax planning is an important component of completing your estate plan and it should always be done under the guidance of an experienced professional. This is because there are many different details to consider in minimizing or avoiding taxes and you want to ensure that you have thought through all of the possibilities.
One of the easiest ways to minimize your tax burden is to put your assets inside a trust. A trust to deal with the assets allows those items to pass to beneficiaries after the creator’s death without having to go through probate. Trusts typically avoid state probate requirements and the expenses aligned with them.
In a revocable trust the grantor can take the assets out if necessary. In an irrevocable trust, however, these assets will be tied up until the grantor passes away. The important component of minimizing a tax burden is to ensure that the assets have been properly titled into the trust. This is the only way to add the additional layer of protection.
Many people default to putting their assets into joint names with a child by assuming this is the most appropriate way to pass on property quickly. However, this can actually increase the taxes that are paid by the child and is not recommended in most cases as an estate planning strategy.
If you need more help determining if trusts are the right tool to help you accomplish estate planning goals, write down your questions and set up a time to speak with a NH trusts lawyer to get more information.