Asset Preservation and Tax Planning
Planning documents are a valuable way to minimize estate and income tax liabilities, for you, your family, and your estate. While these benefits may not be the primary motivating factor that brings clients to Collinson Law, all clients are happy to learn how proper planning may have many positive tax related outcomes.
At Collinson Law we work with you to design your plan in a way to allow you to stay in your home as long as possible, preserve your assets for your use during retirement and any long-term care needs, minimize your out-of-pocket expenses and maximum your legacy for your family. There are a variety of measures that can be taken to reduce exposure to asset depletion and minimize tax liabilities. Depending on your circumstances and wishes, these may include:
- Asset protection trusts ~ trusts may be set up to take care of you during your lifetime, but also to protect and preserve assets. Irrevocable Trusts, Life Insurance Trusts, Spendthrift Trusts, Discretionary Trusts, Qualified Personal Residence Trusts, Special Needs Trusts and Testamentary Trusts. Each of these trusts have particular purposes and benefits and should be discussed with our attorney.
- Investment vehicles ~ in many cases qualified retirement accounts, annuities and life insurance may provide significant tax and asset preservation benefits. Some of these vehicles can be set up so as to remove them from being counted as taxable assets to your estate.
- Gifting planning ~ proper gifting may also be used to provide benefits to others, while reducing potential future tax liabilities. Gifting may take place during your lifetime or as charitable bequests through your estate.
Statutory protections ~ there are protections afforded citizens of the Commonwealth, such as the Homestead Act. Declaring your home under the Act provides significant protections against creditors’ claims that could impact your home.
Contact Attorney Collinson to find out which of these tax planning options might most benefit you and your family.