Asset Protection Planning

Executors face numerous decisions when administering an estate. Asset protection planning often involves making decisions that affect tax elections and how to best transfer property to enhance the estate's value. At Crosswhite Law in Statesville, we provide comprehensive legal advice on issues surrounding administration of trusts, probate matters, and asset protection planning, and tax liability planning. These services include:

• Tax Guidance: Assistance with federal estate tax, fiduciary income taxes, and other tax liabilities.
• Trust Modifications: Guidance on judicial and non-judicial modifications of irrevocable trusts and decanting to new trusts.
• Appraisals: Assistance in securing appraisals for investments, real estate, boats, airplanes, closely-held business interests, and other valuable property.
• Disclaimer Planning: Guidance on post-mortem disclaimer planning.
• Creditor Management: Assistance with managing creditor claims, recovering property, paying debts, and trust administrative expenses.
• Asset Transfer: Guidance to surviving spouses, family members, and other beneficiaries on efficient asset transfer methods.

Minimizing Tax Liabilities

When an individual dies, two types of taxes are due: estate tax (commonly known as the death tax) and the decedent's individual income taxes. Both types require careful planning to minimize exposure to tax liability. Decisions to be made may include selecting the appropriate fiscal year, determining if income should be accelerated, involving a trust, election and disclaimer planning, determining necessary deductions, and choosing the most efficient returns for those deductions.

A disclaimer is an election made by a beneficiary to refuse assets or property they would otherwise receive from a decedent. Once property is disclaimed, it passes as if the intended recipient died before the decedent. When used properly, disclaimers can result in significant benefits, such as shifting tax liabilities or passing assets to other beneficiaries more efficiently.

Another way to change the flow of property is to revise or amend the terms of a trust agreement that no longer works. This can often be done through non-judicial settlement agreements, and depending on the specific terms being revised, it may or may not require judicial approval or other consents.

Decanting is another effective method of planning through trust agreements. Decanting involves transferring assets from one undesirable trust to another more beneficial trust. However, certain requirements must be met to decant assets from trust to trust.

Why Choose Crosswhite Law?

At Crosswhite Law, our knowledgeable attorneys can help employ effective strategies to mitigate exposure to federal estate tax, fiduciary tax, income taxes, generation-skipping transfer tax, and other potential tax liabilities that may arise.

If you need assistance in planning for post-mortem elections and decisions, or help in administering an estate, our attorneys offer a full spectrum of legal services surrounding estate planning, including estate and trust administration. We understand the ever-changing nature of both tax and legal issues that can significantly impact estate planning and can assist you in overcoming obstacles to maximize savings for your loved ones. For guidance on effective planning options available, contact us for a confidential consultation.

Connect with Crosswhite Law online or call (704) 873-7233 to schedule your confidential consultation with one of our Statesville estate planning attorneys.