There may come a time when your parents turn to you as the adult child and request your assistance in helping them put together their estate plan or manage their assets appropriately.
This is a worthwhile concern as you or other beneficiaries may stand to benefit from all opportunities to minimize tax obligations and maximize the value of assets. Furthermore, you are doing a good deed by helping your parents stay organized and understand how various state and federal laws affect them.
- There are several different tax saving strategies that you can implement in order to maximize the value of their assets. These include:
- Encouraging them to keep stocks that have gains and selling stocks that have losses.
- Using trusts to protect assets and avoid the probate process.
- Evaluating their estate planning documents on a regular basis to ensure they are still valid and accurate for your parents’ needs.
- Encourage your parents to take advantage of gift taxes. Each individual in the U.S. is allowed to give up to $14,000 per year to other people. If your parents have an estate large enough to be subjected to the estate tax, then minimizing their tax liability by giving things away while they are still alive can benefit them.
- Consider situations in which you may be eligible to claim your parents as dependents if they qualify.
Consulting with a dedicated estate planning attorney in Massachusetts can help you accomplish the vast majority of goals associated with your needs and their concerns.