i Issues with Estate Planning in Virginia Beach

Issues with Estate Planning in Virginia Beach

When people think of estate planning, they often think only of wills and trusts. However, estate planning goes well beyond deciding who will get your property. It involves thoroughly planning for medical emergencies and death. You want to leave a plan that the people you trust can follow. Remember, they cannot respect your wishes unless they know your wishes.

Part of responsible estate planning involves honesty. If there are people in your life who are going to be difficult, irresponsible, or ruled by emotion, you need to acknowledge it and plan for it. If you have any complications, such as a spouse who is not the parent of all your children or a non-family business partner, you want to take steps to straighten out any potential issues. Being honest with yourself, your attorney, and your potential beneficiaries can help you deal with issues with estate planning in Virginia Beach. Reach out to our estate planning attorneys to discuss your plan for the future.

Transfer Tax

When people come to a wills and estates attorney, their primary concern is an inheritance or estate tax. Virginia does not tax transfers (gifts) during lifetime or at death. It does not impose a transfer tax on the estate of the deceased persons or on Virginia residents who receive an inheritance.

The federal government does have an estate tax. In 2024, the estate tax only applies to lifetime and inheritance gifts to 13.61 million dollars per person. It only impacts about one percent of all households, which is something most people do not realize. This lifetime giving amount is unlikely to impact most people. Unless a Virginia Beach family is in a very fortunate financial position, death taxes are not an issue for estate planning.

Capital Gains Taxes

While estate taxes may not be a massive issue for someone’s estate plan in Virginia Beach, capital gains taxes can be. Many people want to make lifetime gifts to their loved ones instead of waiting till death. That can be a wonderful way to ensure beneficiaries get the most out of their inheritance. However, there can be tax implications.

A capital gain refers to the difference in purchase price and sales price of certain assets. For older people who purchased assets at lower prices, the capital gain can be significant. Short-term capital gains get treated like ordinary income and are taxed at the recipient’s tax bracket. Long-term capital gains may be taxed at 0 percent, 15 percent, or 20 percent, depending on the recipient’s income. Careful estate planning often means not gifting items with significant capital gains before death because gifts at death receive a step-up in cost basis.

Family Complications

Next to taxes, dealing with complicated family issues is the next most significant challenge for people planning their estates. These issues can do more than impact the potential heirs after a testator dies—choosing the wrong person for a medical power of attorney, general durable power of attorney, or other power of attorney can lead to real complications for a person during their lifetime.

When planning for death or medical emergencies, a person needs to be brutally honest about the strengths and weaknesses of their loved ones. If a new spouse does not get along with children from a prior relationship, the testator cannot expect them to get along at the testator’s death. If the testator’s children are still embroiled in sibling rivalry, they are going to fight about issues. The emotional family member who cannot bear the thought of the testator dying is not an excellent choice for medical power of attorney if the testator objects to extreme life-saving measures.

Since family dysfunction is diverse, a probate attorney cannot predict every issue without having an in-depth discussion. While ignoring those underlying problems may make writing a will more accessible for the testator, addressing those issues makes it more likely that the Virginia Beach family will observe the testator’s wishes in their estate plan upon their death.

Let Our Attorneys Help Avoid Issues with Estate Planning in Virginia Beach

Unless you are very wealthy, estate taxes are unlikely to be a big challenge in your estate plan. While many people worry about those taxes, they might ignore the problems that capital gains taxes can present. They also overlook how personal relationships can impact an estate plan. Fortunately, an experienced attorney from Parks Zeigler, LLC can help you avoid issues with estate planning in Virginia Beach. Call now to discuss your estate plan with our team.

Areas We Serve

With an office near Town Center, Virginia Beach and a second location beside the Chesapeake courthouse, our team provides quality legal representation across the entire Hampton Roads Area.

  • Virginia Beach
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  • Chesapeake
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Parks Zeigler, PLLC – Attorneys At Law

Parks Zeigler, PLLC – Attorneys At Law N/a
VIRGINIA BEACH OFFICE
Address
4768 Euclid Road,
Suite 103

Virginia Beach, Virginia 23462
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757-453-7744
CHESAPEAKE OFFICE
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524 Albemarle Drive,
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Chesapeake, Virginia 23322
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757-312-0211
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200 N. Water Street,
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Elizabeth City, NC 27909
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252-679-8880