changing tax laws - are you up-to-date?

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changing tax laws - are you up-to-date?

Taxes are a complicated subject and making the slightest mistake could end up costing you quite a bit in penalties. Do you spend time each year keeping up with the changing tax laws? These laws change more often than you might think. Before you consider filing your taxes on your own, stop and think about what it will cost you to have them professionally prepared versus paying the penalties for making mistakes. My site includes information about the ever-changing tax laws as I know them to be now. The information here is only meant to guide you to making the best possible decisions for your personal situation.

How To Fit Trust And Estate Planning Work In A Wealth Management Plan

Wealth management efforts usually have long-term goals. For many people, this means they may extend into questions about a person's financial legacy. Trust and estate planning efforts often overlap with wealth management needs so you should understand how to bring the three together.


One of the main arguments for combining trust and wealth management ideas is to protect assets. Suppose you wish to transfer assets to an adult child upon your passing. You probably want to do that so they can enjoy the advantages of your wealth.

If those assets become their outright property, they are potentially subject to taxation, lawsuits, liens, and other claims. Conversely, a trust services provider can help you create a trust that insulates the assets from such events.

Tax Benefits

Foremost, you will probably want the trust to produce tax benefits for the individuals named in them. A beneficiary shouldn't see a huge tax bill from the income if the trust is properly devised.

Secondarily, you will want to accrue some tax benefits to yourself. If you're planning to donate part of your estate to a charity, for example, you may want to do it sooner rather than later. The trust can provide tax benefits under the right circumstances. This allows you to aid the charity and improve your situation, too. Also, you'll see the benefits of the trust in your lifetime.

Providing for Others

A major component of wealth management is thinking about what could go terribly wrong. If you have a partner who has serious health issues, for example, trust and estate planning are essential. You don't want to burden them with financial issues when they're already facing medical challenges. A trustee can manage the finances, dealing with everything from medical bills to utility payments.

More importantly, a trust can circumvent the estate transfer process. If they're going to need money immediately after you pass, you don't want them to have to wait. A trust puts that money at their disposal right away.

Reducing Scrutiny

Anything that goes through the estate system is subject to a degree of public scrutiny. Probate is especially notorious for this sort of thing. If you have any type of public profile, you may want to prevent this sort of parsing of the details.

Managing the Trusts

Just as you need to manage personal wealth, a trust has to do the same. Many wealth management principles apply to both situations. You will want a trust to grow just as you've seen your net worth grow.

For more information, contact a wealth management service in your area, such as MidwestOne Bank.