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Your inheritances and avoiding issues for your loved ones

| Apr 14, 2021 | Estate Planning |

When preparing an estate plan in Oregon, it is comforting to know that your possessions and assets will be passed on to a loved one. An inheritance can be a very helpful and welcoming gift for heirs; however, this is not always simple, easy and free of any costs or hassles. Thus, it is important to keep these factors in minds when preparing an estate plan, as the probate process can present issues. The last thing one wants is to leave their loved one in a difficult position after his or her passing.

Inheritances

It is likely that everyone will get to experience inheriting something in his or her lifetime. While this may seem like a simple and beneficial event, it is one that can be complex and even burdensome. When it comes to inheritances, these fall under the category of death and taxes. The passing of property and assets to one person to another after an individual’s death means that one is either a beneficiary or an heir. Depending on how something passes will also determine if this assumption of property will require the probate.

Probate and costs assumed

With regards to estate taxes, the Tax Cuts and Jobs Act that was signed into law in 2017 doubled the exemption for federal estate taxes. It is also important to note that there are no federal taxes on certain inherited assets, such as stocks. However, there are currently seventeen states and the District of Columbia where it is possible to tax an inheritance, the estate or both. This is important to note when there is an estate with property in multiple states.

Five tips

In order to crate a less stressful future for ones heirs, one should consider the following five tips. First, it is important to write a will and makes designations clear with specific details. Next, gather copies of all pertinent documents. Third, create a contact list of any and all people impacted by an estate plan. Next, establish any necessary trusts. Finally, utilize professionals to help navigate this process and to better understand probate and ways to avoid it.

Creating an estate plan is like planting a tree. One hopes to provide something of value to their loved ones after they pass; however, to ensure this is a valuable passing of property and assets, it is important to consider how best to get one’s affairs in order. Leaving one’s legacy to loved ones is important to many individuals, as it can be very beneficial and helpful for his or her heirs. However, the last thing one wants to do is to create problems or added issues. Thus, it is important to consider one’s estate plan as a whole and how the probate process could look like, it is needed after he or she passes.