New York residents may know that changes to the tax code could have an impact on an estate plan. However, there are steps that individuals should take to protect their wealth regardless of whether or not there are any significant changes on the horizon. For example, it can be a good idea to review a plan regularly to check whether beneficiary designations or terms of a trust need to be changed.
It can also be a good idea to sell off assets such as a family business and move them into a trust. Ideally, assets will be sold at as low a valuation as possible to ensure that growth takes place outside of the estate. While the asset is in the trust, its original owner can still benefit from revenue that it generates. If an asset is in a trust when a person passes on, it may reduce estate taxes owed.
Individuals may also want to create a trust for their children or grandchildren to benefit from. This can be ideal for those who want to gift assets in an indirect manner. Giving through a trust may offer tax benefits while also reducing the chances that an asset is squandered by the beneficiary. Depending on how such a trust is designed, it may be possible to take loans from it.
Taking time to engage in estate planning may make it easier to preserve assets for future generations. Taking steps such as creating a trust may allow assets to remain outside the reach of creditors and a probate court. Those who have created a will, trust or other plan documents may benefit from meeting with an attorney to review them.