Estate Planning

Estate taxes can deplete up to 50 percent of their total estate. Taking appropriate steps to develop a sound estate plan can provide for effective preservation and transfer of assets to your loved ones.

Estate planning involves more than just a tax savings for the wealthy. However, many people don’t realize that they too could benefit from estate planning. After conducting an assessment of their assets, many are surprised to find that the value of their homes, businesses and investment accounts combined may make them more vulnerable to estate taxes than they realize.

Estate taxes are generally paid from one of four sources: cash reserves, loans, liquidation of assets or insurance proceeds. A solid estate plan may provide the liquidity your heirs will need to settle your estate taxes, minimizing their financial burden. With a little planning, you can take steps that may help ensure that your family has adequate funding to take care of any estate tax obligations. Additionally, a proper estate plan could help reduce the amount of taxes they might owe.

Finally, estate planning may help you to avoid probate. Probate is the process that transfers legal title of property from the estate of the person who has died. It usually ties up property for months, sometimes even a year, and could further deplete an estates value in legal and court fees.

Duval Capital Management and LPL Financial do not offer legal advice or services.