This blog has frequently mentioned estate taxes, but we cannot stress enough how important it is to talk to an estate planning lawyer about these taxes when making important end-of-life decisions. Although any estate planning attorney in Culberson County can help you make a will, only an experienced one will fully brief you on estate taxes and how they may effect your loved ones. As one individual in the will and estate field says, “There’s nothing worse than being in your worst grieving moments and having to deal with financial chaos.”
One of the problems that many Texans don’t consider is that different vehicles are taxed differently. Imagine someone leaving roughly the same amount to his or her two children, but in vastly different forms. One may be subject to various taxes, while the other is not, leaving one child with far less than his or her sibling. Though the intent was to leave both children the same amount, a shoddy will or an inattentive estate planning attorney may not catch what will surely be a disappointing result.
Another big problem is the fact that many people die after having failed to pay their taxes for a few years. When you are older, ill, hospitalized or living in a nursing home, you may not think about taxes or even filing for an extension. While the Internal Revenue Service may not catch you right away, when your estate is distributed to your beneficaries, it certainly will take unpaid taxes out. To have to deal with the IRS and taxes while coming to terms with the loss of a loved one can be too much to bear.
Wise estate planning, however, will do a better job of addressing these tax issues up front and incorporating them into the will and estate plan.
Source:Chicago Tribune, “Plan now to avoid inheriting a tax mess,” Amy Feldman, Aug. 8, 2013