Good vs Bad Assets: Your Guide to Estate Planning

When it comes to estate planning, it’s important to consider what the process entails along with any tax incentives which could potentially affect your heirs. Many people aren’t aware about the tax implications of holding onto certain assets and how they can impact the potential value of an estate. It is possible to minimize taxable income and maximize the inheritance your beneficiaries may receive with the appropriate strategy. It helps to understand which assets to hold onto until death and which to disperse if necessary.

Assets to Hold Onto

Everyone wants to protect the financial future of their loved ones. Trying to determine which assets will benefit them in the best way can be somewhat challenging. Some of the most valuable assets to hold onto typically include:

  • Collectibles
  • Depleted partnerships
  • Stocks with capital appreciation
  • Roth IRAs

If you have any depleted securities, cash, bonds and taxable IRAs, it may be more advantageous for you and your heirs to liquidate those assets when estate planning. For the majority of estate planning cases, inheritance taxes may not have any significance and it’s best to concern yourself with income taxes owed.

Planning for the Future

When considering which assets to hold onto and which to liquidate, it’s important to consider those that have higher long-term gains (like collectibles) and those that aren’t subject to income taxes when payouts are made to beneficiaries (like Roth accounts). If you need estate planning guidance, it’s in your best interest to consult with a knowledgeable probate law attorney in McAllen.

Legal counsel is available to help you understand the details of the tax system which could potentially affect how your assets or debt are valued after death. Our attorneys can also help resolve any trustee disputes or accomplish specific goals when coming up with an effective estate strategy.



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