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Estate Tax Planning: Minimising Tax Liabilities for Your Heirs

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Most of us have a strong desire to take care of loved ones even after we have gone. Knowing that you have provided a strong financial safety net for your heirs can bring you great comfort and peace of mind.

In order to achieve that aim you need to be searching family lawyers Melbourne, for instance, and talking to a professional who can help you organize your estate in the most tax-efficient way possible.

It should always be your aim to leave as much of your wealth to your heirs as possible. The only way to do this is to minimize the tax due on your estate. Here are some points to consider when planning your future tax liabilities.

A trust is often the best starting point

When it comes to estate planning a trust is one of the most effective solutions. It is a great way to legally shelter assets from tax and to distribute your wealth in the most efficient way possible.

A trust gives you an element of protection from a number of planned and unseen events that can happen in your life.

It is sensible to talk to your chosen lawyer and wealth management adviser about your future plans and they will be able to guide you on how to set up a trust that allows your money to be sheltered and distributed in a way that reduces your tax burden as much as possible.

Paying for legal advice is often money well spent

It sometimes feels counterintuitive to spend money in order to save money, but that is what you are doing when seeking professional legal guidance.

A family lawyer will know all the right questions to ask about your financial situation and future plans. They can then formulate a tax-efficient strategy that will ensure you and your heirs keep as much of that money as possible.

Getting good legal advice is often money well spent when you consider the potential savings you can make on your tax liabilities.

Keep your will up to date

Your final wishes can easily change over the course of your life. You can also accumulate assets and general wealth that needs to be accounted for when you pass away.

It makes a lot of financial sense to get your will updated as and when circumstances change. If your existing will does not reflect your current wishes and cover all of your assets it could easily complicate matters at a point when you will not be able to do anything about it.

Not updating your will could also potentially increase your tax liabilities.

It is never too early to start planning

We all know how unpredictable life can be. That is why it is never too early to sit down with a legal professional and start planning your estate as early as possible.

You want your loved ones to inherit as much of your wealth as possible and to pay as little tax as you can on your estate. The only way you are going to do that is by planning ahead and organizing your financial situation in a tax-efficient way.

Talk to your lawyer to discuss how they can help you to keep as much of your wealth as you can.

Jordan Wayne, a psychology graduate from the University of Hertfordshire, has a keen interest in the fields of mental health, wellness, and lifestyle.

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