What Do You Know About Estate and Estate Taxes? Some Frequently Asked Questions!
Estate planning and estate protection planning are two terms which are gradually becoming common here in Santa Barbara, says Ian Filippini from Filippini Financial Group in Santa Barbra. A large number of people are progressively starting to realize the importance of estate planning and exactly why they need it.
Those of you, who have been investing in creating a solid residential or commercial real estate portfolio, must realize that estate planning has a number of benefits that you can get. Here are some questions about estate planning, which you might have been thinking about, and the answers from the wealth management professional, Ian Filippini.
What Exactly Are The Things Included In Estate?
Ian Filippini explains that your total estate is the total accounting of everything you own or have interests in, at the day of your death. However, the value of these assets is calculated according to the fair market value, no what you had paid for them. You total estate could include real estate, securities, trusts, and other assets.
If I Own A ½ Interest In A Business With My Sister, What Part Of It Would Be Included In My Total Estate?
Depending on a number of factors like, how you acquired your estate, how it is supposed to be treated under the state law, most probably, you would only be able to include half of the business’s value in your total assets. However, a large number of legal factors are effective here, so you might want to consult a professional like Ian Filippini from Filippini Financial Group in Santa Barbra.
What Is Not Included In My Total Estate?
Usually, your total estate doesn’t not include any assets or properties, which are solely owned by your spouse or any other individual. Lifetime gifts that are complete and life estates given to you by others, over which you have no power after your death, are also not included in your total estate.
Are There Any Loopholes To Cut Down Estate Taxes?
Not exactly loopholes, but there are legal ways to cut down the estate tax, says Ian Filippini. Some of those ways are:
- One of the most common type of deduction people look forward to, is marital deduction. In the case where you pass away, leaving your assets to your spouse, the property must pass outright.
- If you leave your property to a charity foundation, it is deductible from your total estate.
- Mortgages also allow you to decrease taxes.
- Any losses during estate administration can also help.
What Should I Consider When Hiring Help For My Estate Planning?
Filippini Financial Group, located in Santa Barbra says, there are a number of considerations you need to make, and just hiring a lawyer might not work out every time. Ian Filippini urges you to make the following consideration when hiring help:
- The size of your estate (monetarily and physically)
- How multifaceted can handling your estate get?
- How are your previous financial records?
- How many beneficiaries are there? Do you know that they will cooperate with each other?
- Do you need estate-planning help?
With all these considerations in mind, it is a good idea to look around among different legal advisors, lawyers and professionals before finally deciding to choose one. Preferably, go for a firm, which has years of dedicated experience, a firm like Filippini Financial Group!
Do I Need To Be In Constant Contact With The IRS?
No, not at all. As soon as you choose an estate planning professional, you wont be needing to handle all taxation or IRS issues yourself, but of course, you need to be there if an IRS representatives asks you to be there.
What If I Have All My Tax Filing Documents Ready, But I Fail To Submit Them By The Due Date?
In such a case, usually your estate-planning professional or representative is supposed to file for an extension for the deadline. This extension can be extended up to 6 months. However, the legit amount of tax still needs to be paid, and interest is accrued on any amount that remains after the due date.
These are some of the most general questions you might have, and the answers to them. However, according to Ian Filippini from Filippini Financial Group, there is usually more to estate planning than we normally think. He says that if you have a diverse portfolio of real estate investments in Santa Barbara, it would be a good idea to have professional help by your side, so that you make decisions that favor you and your loved ones in the future!