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Why should you do estate planning in the U.S.?

Law Offices of Yu & Associates

Estate planning is a series of plans to help individuals so that the distribution of their property will be effectively protected during their lifetime and after death. Many states in the U.S. impose estate tax, inheritance tax, and gift tax. The ultimate goal of estate planning is to leave the estate as much as possible to the heirs. Strategic plans to take actions to minimize assets lost to taxes can effectively help achieve this goal. Estate planning refers to the use of various legal tools and legal documents to properly arrange the transfer of assets in anticipation of death. These legal tools can help avoid the probate process and pass down assets while avoiding high taxes. These legal documents will specify your wishes and appoint who will guard those wishes and protect these assets for the benefit of your beneficiaries.

An estate refers to the total property owned by an individual prior to distribution. It includes real estate property, for example houses, and personal property, for example vehicles and bank accounts. A good estate plan strives to protect the maximum amount of the individualí»s wealth as much as possible for the benefit of the beneficiaries, while also taking into account flexibility for the people who own the assets prior to death. As many states in the U.S. have estate taxes and inheritance taxes, if the estate planning is not done well, once a person dies, the property accumulated during their lifetime may not be distributed according to the original wishes of the asset owners, and the relatives may also fall into family disputes. Moreover, if the estate planning is not prepared properly, the court may immediately intervene upon death to handle the distribution of the estate through the expensive and time-consuming probate process. The court may also appoint guardians for minors, or appoint adult guardians when the beneficiary becomes disabled or incapacitated. However, these appointed persons may not the ideal person that the estate owner desires.

The following summarizes the necessity of doing estate planning:

  • Effectively ensure the minimization of estate tax and other expenses
  • Distribute assets based on the wishes of the property owners
  • Avoid lengthy and expensive probate process in court
  • Asset owner can still manage and control the assets even when incapacitated
  • Distribute the estate in an orderly manner at the time of death
  • Keep privacy if desired

Overall, estate planning can protect the maximum value of the property for the family, reduce the time spent on the distribution of the estate, and also ensure that the desires of the estate owners are properly achieved.

The above is a general introduction, and should not be construed as individual legal advice. For specific legal questions, please contact the Law Offices of Yu & Associates. Tel: 301-838-8986, Fax: 202-595-1918; E-mail: syu@yulegal.com, Address: 110 N. Washington St., Suite 328E, Rockville, MD 20850. (All rights reserved.)

Ó Yu & Associates LLC, 110 North Washington Street, Suite 328E, Rockville, MD 20850, USA. Tel: 301-838-8986