California estate owners can acquire significant benefits by creating an estate plan. These plans help protect their assets and properties while also determining the rightful heirs to items included in their estate. Estate Planning Services in San Francisco, CA, assist these owners in achieving their goals for their assets and properties.
Decreasing the Total Value of the Estate
The most effective way to decrease the estate’s value is by transferring key properties and assets out of the estate. Estate planning enables owners to transfer ownership of these items to other family members or into a foundation. These opportunities allow family members to acquire or use the items earlier, preventing creditors from gaining access to the property or assets through probate.
Reducing Tax Implications for the Beneficiaries
Early ownership assignments can reduce the overall tax implications, as the court identifies tax requirements for individual items rather than the total estate. This is especially beneficial if a specific beneficiary receives a larger portion of the estate. Tax implications are also reduced when items are transferred into a foundation.
Creating a foundation allows beneficiaries to use these items in the foundation’s name rather than under the estate, potentially providing opportunities for generating income based on the foundation’s purpose.
Starting Trust Funds for College
Estate owners with children should consider establishing trust funds to save for their children’s college education. These trust funds can provide adequate funds for each school year, preventing the child from receiving the full balance all at once.
California estate owners should create a clear plan for the division of their property and assets to gain advantages that can reduce tax implications for their beneficiaries. These advantages also allow estate owners to decrease the total value of their estate at an earlier stage. If you require Estate Planning Services in San Francisco, CA, please contact Von Rock Law, PC, for further information.
