Arizona and New Mexico estate planning clients have a wide variety of options at their disposal when it comes to protecting assets and determining a future legacy. For many, a simple will can achieve many of their goals without a great deal of complexity, but a host of trust options such as qualified trusts and special-needs trusts can put a finer point on an estate plan that requires more specific designations and protection of assets. An estate planning lawyer can explain family limited partnership and other options that present significant benefits to clients with sophisticated tax planning needs.
Family Limited Partnerships (FLPs) are one increasingly popular option for protecting wealth, real estate holdings or businesses among multiple family members. An FLP provides a host of benefits, including:
- Protection of assets from marital property division, creditors and legal judgments
- Significant tax savings resulting from valuation discounts
- Simplification of distributions to succeeding generations
- Increased economy in administration of assets through proper consolidation
- Protection against forced liquidation of assets
A clear assessment of the shortcomings of any tactic must also be factored into any estate planning strategy. In creating and administering FLPs, some uncertainty endures about relevant tax law issues, but an experienced attorney can explain the latest legal developments and help insure the efficacy of this strategy. The expenses of creating a proper FLP might make this an option better suited to higher value assets.
Estate Planning Strategies: Legal Complexities Demand Clear Advice
The list of issues presented by estate planning clients with significant assets can be long: charitable giving, asset allocation, powers of attorney and establishment of family foundations are just a few of the prominent ones to be considered. Dependable advice is vital in any legal matter, but a client’s choice of an estate planning law firm will have major implications for years to come and perhaps for generations yet unborn.
As a client’s wealth grows and the law changes, regular reconsideration of the details becomes a valuable exercise. By enlisting the services of a trusted estate planning lawyer from the outset, parents can enter their golden years knowing that the legacy they have worked so hard to build is secure, and their wishes well understood.