Using Asset Location Throughout Property Planning – New York Property Planning Lawyer Weblog – Apr 26, 2021

Estate planning is a critical process in planning your death or incapacity for work. Unfortunately, however, too many people neglect estate planning or do the bare minimum. In reality, however, it is important to take estate planning seriously to ensure your goals are met. This means doing activities like routinely updating your estate plan and speaking with an estate planning attorney if you have any concerns about your estate. To get the most out of your estate plan, you should also consider the various asset location strategies that can help you get the most out of your estate.

What is qualified as “intelligent” can change

To a certain extent, intelligent positioning is subjective. While one person could choose to give their wealth to charity only, another person could choose to give their savings to their children. Often the issue is not how much is left, but what is left after someone dies or becomes incapacitated, and who gets what.

What are asset locations?

Asset location refers to where a person strategically keeps the money invested between tax-exempt and taxable accounts in order to maximize after-tax returns. This concept differs from asset allocation, which is about what type of investment a person invests their wealth in.


In addition to determining how much to donate to charity, you should also decide which assets to give away. If you are giving assets to an estate, it will likely meet the requirements of the Internal Revenue Service Exemption requirements and the charity doesn’t have to pay taxes. Some clients decide that the best strategy is to make an annual distribution to the charity that makes the most of tax efficiency and allows individuals to support causes that keep them close.


While many clients feel that in fairness they must give their children the same wealth, in reality, unequal distributions sometimes make the most sense. Other parents choose to pass assets on in such a way that the beneficiaries ultimately receive similar inheritances. A myriad of factors should be considered in deciding what level of wealth to pass on to adult children, including the level of income the child receives and the tax implications of such a transfer.

High Earning Beneficiaries

Some clients only have high earning heirs. In these situations, estate planning professionals could find creative ways to push clients to the limits of their current tax bracket and address tax concerns. For example, a customer might choose to exceed their required monthly payouts and use that extra cash to purchase unqualified investments or life insurance. In this way, after the transfer of these assets, the beneficiary receives a top-up base and minimizes taxes.

Contact a knowledgeable estate planning attorney today

While the estate planning process is often complex, a skilled lawyer can help you create documents that will help you achieve each of your goals. Contact Ettinger estate planning today to schedule a free case assessment.

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