As residents of the area know, if you were to daydream and envision the ideal modern tropical paradise, you would probably come up with an image of Naples, FL. The area is bursting with natural beauty. We have sublime beaches, shimmering white sands, colorful flowers and vibrant greenery.
Just drinking in all of this beauty is an experience in and of itself, but Naples is a sophisticated town with many different fine dining and cultural opportunities to explore. Obviously, the weather is always mild, and we consider ourselves to be very fortunate to be able to live and work in this fantastic community.
Naples Residents Can Preserve Their Wealth
As you might imagine, since Naples is such a desirable place to live, many people who can live anywhere in the world choose to live in our community. Because of this dynamic, it is a very wealthy area. The per capita income here is near the top of the heap among American cities, and there is a very high concentration of millionaires in Naples. As you might imagine, property here is extremely valuable.
Here at Barbara M. Pizzolato, P.A., we help families preserve their hard-earned legacies. High net worth individuals have to be concerned about the potential impact of the federal estate tax, and it can be considerable, because it carries a 40 percent maximum rate.
There is an estate tax exclusion that allows you to transfer a certain about before the estate tax would become applicable. It is adjusted annually to account for inflation, but if your estate is valued in excess of $5 million, you should be quite concerned.
We should also point out the fact that there are a number of states in the union that impose state-level estate taxes. Florida is not one of them, but many wealthy people relocate to Florida from states in the Northeast like Connecticut, New York and New Jersey.
These are states that have state-level estate taxes, and you can face state-level exposure if you own valuable property in one of these states, even if you live in Florida.
Taxation can take a heavy bite out of your legacy, but there are steps that you can take to ease the burden. Our firm can help you position your assets in a tax efficient manner so that you can minimize your estate tax consequences. Irrevocable trusts of various kinds are often used by people who are looking for estate tax efficiency solutions.
Naples, FL Living Trusts
In addition to wealth preservation trusts that are used by wealthy people, there is another type of trust that can be used by individuals who would not consider themselves to be among the financial elite. This would be the revocable living trust.
You gain a number of different benefits if you use a living trust instead of a last will. For one, you avoid probate. This is a time-consuming and expensive legal process.
Secondly, if you use a will, there would be nothing stopping inheritors from squandering their inheritances quickly. With a living trust, you can instruct the trustee to distribute limited assets over an extended period of time, and there would be a certain level of protection from the beneficiary’s creditors.
Explore All Options with a Knowledgeable Estate Planning Attorney in Naples
In addition to wealth preservation trusts for high net worth families and living trusts, there are other types of trusts that can be used to address different circumstances that may exist.
If you decide to work with our firm when you are creating your estate plan, we will gain an understanding of your family dynamic, your financial situation, and your overall objectives. We will also answer all of your questions in a thorough, fully understandable manner. In the end, we can put together a tailor-made estate plan for you, and you will then be able to go forward with total peace of mind.
Set the Wheels in Motion Today!
Estate planning is one of the most important forms of financial planning that you will ever be involved in. When you plan your estate, you are preparing to give final gifts to the people that you love the most.
This is a huge undertaking, and you should work with a local Naples attorney that understands the needs of people in our area. We pride ourselves on our relationship building, and our clients often become our friends. This is actually true; it’s not just “marketing speak.” If you would like to set up a consultation, call us at 239-225-7911 or drop us a line. We look forward to serving you!