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Factors to Consider in Estate Planning

by AOG Wealth Management

When talking about estate planning, you’ll need to face hard decisions about how best to distribute your wealth. Estate planning is a process involving the arrangement, management, and disposal of an individual’s estate during their life or after passing on.

Estate Planning

One of the decisions you need to make is the proper distribution of your assets to your family. If you own several assets, it can get a little complicated. There are factors, however, that can affect which assets are best left to family. The expert in estate and tax planning in the Washington, DC area, AOG Wealth Management, shares three of them.

  1. Liquidity. This refers to assets that can be easily converted into cash, with minimum impact on the price. If you mostly have tangible assets, your family will need to pay for estate tax. They can do this by selling the assets at a discounted price. Solid assets can include cars, art, and other personal property. You’ll have to take this into account when planning your estate. Overall, it’s best to leave liquid assets to your family, since they allow for a much easier task.
  2. Sentiment. These are assets that have sentimental value, like personal properties and vacation homes. Leaving these assets to your family can be a personal and often conflicted decision. It can be complicated enough, in fact, that it will to need separate planning. To avoid estate fights between family members, leaving assets of sentimental value should allow for discussion before the person passes on. This allows for a more worry-free estate planning process.
  3. Tax Planning. Taxes come into play in estate planning as well, adding complications and expenses. Some assets receive a step-up basis, which your family can sell without tax consequences. Certain items like retirement accounts, however, don’t receive this treatment. When it comes to tax, you can find little difference between hard and virtual assets because tax assessment is based on the fair market value of the estate.

If you want a more worry-free estate planning experience, turn to AOG Wealth Management. We’ll provide quality solutions to help you to reach your financial goals. You can also count on us for your financial planning. Call us today at (866) 993-0203 to schedule your appointment.

The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.

Category: Wealth Management