Pennsylvania citizens with a high net worth will want to start the estate planning process sooner rather than later. Getting an early start on estate planning helps to ensure that your assets are passed on as you wish to your chosen beneficiaries. Below are some tips to ensure that your estate planning goes as smoothly as possible.
Realize taxes can be a big problem
Estate planning for those with a high net worth brings on the added grievance of dealing with various taxes. Some of the most common include gift taxes, estate taxes, generation-skipping transfer taxes and income taxes for your beneficiaries. While many people can sneak under the radar with small amounts, you or your heirs may be liable for paying these taxes when dealing with large amounts of money.
Incapacitation planning is a must
While it’s not a pleasant thought, you should prepare your estate in the event that you become incapacitated. You’ll want to designate a power of attorney for your healthcare needs and your financial needs. These will be individuals who you trust with making decisions that are in your best interest should you be unable to make such decisions for yourself.
Your healthcare power of attorney will be in charge of making decisions regarding your medical treatment. These include decisions regarding your end-of-life care. Your durable power of attorney will take care of all of your financial and legal matters, such as opening your mail and managing your bank accounts.
Planning out what will happen to your estate upon your incapacitation and death is a necessary part of protecting your family’s wealth. If you fail to construct estate plans, Pennsylvania’s intestacy laws govern who is entitled to your assets. As you make the decision to start planning out what will become of your estate, you’ll want to contact an attorney to ensure your best interests are protected at every stage of the process.