Depending on your individual needs, strategies can be employed within your estate to minimize the amount of taxes you have to pay and avoid probate. Upon your death, your executor must file a tax return on your behalf that assumes assets have been sold and any capital gains/losses will be crystallized. This may lead to a large tax bill.
Below are a few key examples of how you can minimize the taxes paid and avoid probate:
- Maximize asset “roll-overs” – transfers to your spouse that defer capital gain liabilities
- Set up a trust to ensure your beneficiaries are well looked after
- Give gifts of cash or possessions while you are still alive
- Buy life insurance that is paid out to the beneficiary on a tax-free basis
- Restructure investments with insurance companies to avoid probate upon death
Having a strategy in place to preserve the value of your estate for loved ones is important. Working with ProCorp Financial can help you devise, or revise, your plan.