Estate planning is an important and often challenging process for individuals and their families, especially when high net worth estates are involved. Not only does estate planning have special aspects to it, it is also regulated by a set of laws that many find challenging to navigate. Additionally, these laws are regularly being amended, changed and updated, making the process even more difficult for those who are not regularly involved in estate planning.
There are a number of different factors that need to be considered during the estate planning process. This primarily involves the navigation of tax laws, regulations and liabilities in order to secure the lowest possible tax burden for the estate, ensuring that beneficiaries receive the maximum benefit. Specifically, this process covers the protection of inheritances for heirs, as well as of the minimization of estate taxes. It also ensures that the estate doesn’t end up in probate proceedings and appoints the best possible trustee for the estate.
Because of the value of high-net-worth estates, it is highly recommended to exercise due diligence and consult with attorneys who have expertise in the estates of high-net-worth individuals. This will ensure that your estate is left in the best possible position for securing your family’s financial future.
Choosing The Right Trustees
The first and most important step in the process of estate planning for high net worth individuals is the selection of the right trustee or trustees. These individuals hold a tremendous amount of responsibility for the estate by overseeing and making critical decisions. Because of this, selecting the wrong trustee can have disastrous results for the estate. Even professional trustees sometimes do not have the best interests of the estate in mind, making recommendations and decisions based on what will be beneficial or even financially profitable to them. In certain situations this can even result in disputes among beneficiaries and trustees of the estate.
Special Tax Considerations
There are several special considerations for high net worth estate planning. These primarily include matters concerning tax liabilities. As mentioned earlier, the ultimate goal of estate planning is to ensure that the hard earned savingings of an individual has accrued throughout their lifetime is passed down to their children, grandchildren and other recipients after the individual passes on. Before that point, another aspect of estate planning that needs to be considered is the use of the estate’s savings to fund the retirement of the estate owner. Unfortunately, there are usually significant tax liabilities associated with high-net-worth estates and if incorrect decisions are made then these taxes can be of considerable financial detriment to the estate.
Hiring an Estate Planning Attorney
Because of the complex nature of estate planning and the high financial stakes involved with the estates of high net worth individuals, it is strongly recommended to work with an experienced estate planning attorney to ensure the best possible outcome. This will protect both the retirement of estate owner and also ensure that as much of their legacy is passed down as possible.
The attorneys at Sean Nichols PLLC have years of experience working with high net worth individuals to successfully plan for their retirement and protect their estates financial future. If you or someone you know is in need of estate planning services, please contact our office today to get started on making the best plan for your family’s future.
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