The Three degrees of real estate planning is a systematic method of describing estate planning in a manner that you could readily follow. You can also take the services of best estate planning in attorney payson az. Which of the Three levels you want to complete depends upon your specific goals and conditions.
Image Source: Google
Level 1: The Simple Strategy
The situation for the amount one preparation is that you have no will or living trust set up, or your present will or living trust is obsolete or insufficient. The goals for This Kind of planning would be to:
- decrease or eliminate estate taxes;
- prevent the expense, delays, and publicity connected with probate in case of death or incapacity; and
- shield heirs out of their own inability, their disability, their lenders, and their predators, such as ex-spouses.
Level 2: The Irrevocable Life Insurance Trust (ILIT)
The situation for degree two preparation is your property is estimated to be higher compared to estate-tax exemption. Even though there's a current lapse in property and generation-skipping move taxation, it is very likely that Congress will reinstate both taxations (maybe even retroactively) a while this season.
Measure Three: Family Limited Partnerships
The situation for degree three preparation is that you've got a projected estate-tax liability that exceeds the life insurance bought in degree two. In case your own $ 1 million gift-tax exemption ($2 million for married couples) can be utilized to make life presents, the gifted property and future appreciation and earnings on such house are removed from your property.