Estate Planning
Plans for D.C. and Maryland Residents
Through his estate planning practice, Paul has helped Washington, D.C. and Maryland residents transfer assets to loved ones and charities during their lifetimes and protect the value of estates by using wills and trusts. To further client goals such as minimizing the gift and estate taxes, he considers a broad range of possibilities and helps clients understand their legal options. He can also explain how relevant laws have changed over time, and his recommendations reflect awareness of the ever-shifting legal landscape.
Tax Planning for Larger Estates
Sizeable estates may be subject to taxation at the federal level as well as by the District of Columbia and Maryland governments. Anywhere from a few thousand to millions of dollars in taxes may hinge on a few hours of proper estate tax planning. Paul can work in conjunction with accountants, financial advisors, or wealth managers to create plans that reflect the “on the ground” financial situations of his clients. With insight into how client’s personal finances may evolve over time and understanding of how laws also change, Paul devises strategies to improve client’s chances of paying only the bare minimum taxes required by law.
Business Succession Planning
Business owners face unique estate planning challenges, particularly when transferring ownership and control of a company. You want to avoid mistakes that could damage the company’s value at this critical stage. Essential operations should continue smoothly, costly legal battles should be avoided or their chances minimized, and where applicable exposure to creditors should be reduced.
Transferring ownership of a business might also affect the value of your estate for tax purposes. Sometimes, the unexpected high valuation of a business requires families to deal with probate proceedings and make private finances a matter of public record. Moreover, the government may seize a substantial portion of assets, which may be essential to running the business smoothly.
Fortunately, there are steps many business owners can take to minimize the chance of probate proceedings and reduce the tax burden faced by heirs. This is why your business succession plan should be considered as part of a comprehensive strategy, which includes tax planning. You may also want to examine other legal services for businesses.
Transferring ownership of a business might also affect the value of your estate for tax purposes. Sometimes, the unexpected high valuation of a business requires families to deal with probate proceedings and make private finances a matter of public record. Moreover, the government may seize a substantial portion of assets, which may be essential to running the business smoothly.
Fortunately, there are steps many business owners can take to minimize the chance of probate proceedings and reduce the tax burden faced by heirs. This is why your business succession plan should be considered as part of a comprehensive strategy, which includes tax planning. You may also want to examine other legal services for businesses.
Formation of Trusts
A trust is one of the main legal vehicles for minimizing estate taxes, but it also serves many other purposes. When you create a trust, you are trusting another person (or corporation) called a trustee to hold particular assets for the benefit of a third party, called a beneficiary. Depending on the details of the agreement with the trustee, you may control when and under what conditions distributions are made from the trustee to the beneficiary.
Creating a trust is one of the main reasons why people hire attorneys with estate planning experience. There are many kinds of trusts in the District of Columbia and Maryland; and each kind serves a unique purpose. For example, you can use trusts for the following reasons:
The above list is not intended to be exhaustive; there are other projects you can undertake using trusts as a legal tool. If you need some assets to be managed for a purpose not listed here, you should discuss the matter with an attorney.
Creating a trust is one of the main reasons why people hire attorneys with estate planning experience. There are many kinds of trusts in the District of Columbia and Maryland; and each kind serves a unique purpose. For example, you can use trusts for the following reasons:
- Prevent spendthrift heirs from depleting their inheritance.
- Protect the assets of your estate from creditors and frivolous lawsuits.
- Provide a quality of life for a loved one in the event that something happens to you.
- Protect the interests of minors who cannot yet claim their inheritance.
- Avoid probate proceedings and associated court costs, appraiser’s fees, and legal fees.
- Reduce the size of your estate to bypass or minimize taxation.
- Provide resources to a charitable cause or other cause you personally find meaningful.
- Providing for the care of a pet animal.
The above list is not intended to be exhaustive; there are other projects you can undertake using trusts as a legal tool. If you need some assets to be managed for a purpose not listed here, you should discuss the matter with an attorney.
Retirement Planning Legal Strategy
Saving for retirement is not just a good idea; it is a necessity. The Social Security Administration warns not to count on the government for a comfortable retirement and recommends the use of private pensions, savings, and investments to make up the difference between what the government can provide and what you really need for comfort.
Whether you have questions about a traditional IRA, 401(k), 403(b), Roth IRA, or some other account, Paul can help you understand the relevant rules as well as how those rules can affect your personal finances. He can explain the sensitive timing of making withdrawals and explain how your retirement plan may affect non-financial goals such as avoiding probate.
Paul also has experience with Self-Directed IRAs (SDIRAs), which can benefit people who want to diversify their retirement assets, for example to hedge against the stock market. Such assets may include real estate, precious metals, private businesses, and even cryptocurrencies such as bitcoin and ethereum, among many other types of investments. Most kinds of investments under a SDIRA are administered by a custodian or trustee.
Whether you have questions about a traditional IRA, 401(k), 403(b), Roth IRA, or some other account, Paul can help you understand the relevant rules as well as how those rules can affect your personal finances. He can explain the sensitive timing of making withdrawals and explain how your retirement plan may affect non-financial goals such as avoiding probate.
Paul also has experience with Self-Directed IRAs (SDIRAs), which can benefit people who want to diversify their retirement assets, for example to hedge against the stock market. Such assets may include real estate, precious metals, private businesses, and even cryptocurrencies such as bitcoin and ethereum, among many other types of investments. Most kinds of investments under a SDIRA are administered by a custodian or trustee.
Healthcare Choices that Are Right for You
No overview of estate planning would be complete without discussing the advance healthcare directive or “living will”. Unlike other provisions of law discussed above, the living will is not primarily about money (though prolonged hospitalization and treatment for terminal conditions can be expensive, and many clients would rather avoid unnecessary suffering).
Paul recommends using the standard forms provided by the District of Columbia or Maryland governments respectively, in order to avoid confusing hospital staff. As your attorney, he can help you understand the meaning of the provisions on each page of the living will. You should also discuss these matters with loved ones, especially if you intend to give them the right to make medical decisions on your behalf in some possible situations.
Paul recommends using the standard forms provided by the District of Columbia or Maryland governments respectively, in order to avoid confusing hospital staff. As your attorney, he can help you understand the meaning of the provisions on each page of the living will. You should also discuss these matters with loved ones, especially if you intend to give them the right to make medical decisions on your behalf in some possible situations.
