Estate, Trust & Tax Planning Services
Trustworthy Tax Planning Services in Lynchburg
For many HSC Wealth Advisors clients, our trust, estate and tax planning services provide the basis for long-term security and a legacy of wealth. Our estate and tax planning service helps our clients protect the assets and investments they have worked so hard to build.
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Explore Your Estate and Tax Planning Options
Each person has a unique history and impact on the world around them. Have you thought of the legacy you’d like to leave behind? Have peace of mind establishing a clear and organized plan with the professionals at HSC Wealth Advisors. We offer estate, trust, and tax planning tailored to your personal values, familial relationships, business goals, and tax considerations.
Our strategic estate planning services help decide how an estate will be managed and transferred after death. The process involves setting up trusts, writing a will, naming beneficiaries, naming an executor, and making charitable donations.
Other estate planning tasks may involve personal matters such as gathering assets, paying for funeral arrangements, paying debts, and settling business affairs. Our advisors offer guidance to define and organize your desired outcomes.
Estate Tax Planning
Estate planning requires tax considerations. Implementing a proactive approach throughout one’s lifetime offers a way to minimize estate tax liability so beneficiaries can benefit more from an inheritance.
Our professionals stay up to date with tax laws and requirements. We can provide valuable information, answer your questions, and help you minimize the amount of property or valuation in your taxable estate.
Trust Tax Planning
Trust tax planning describes a comprehensive approach to help protect assets and manage wealth distribution. By structuring a trust in different ways, the strategy aims to achieve different tax advantages.
Depending on unique circumstances, the planning may offer a way to avoid probate, reduce estate taxes, or facilitate an efficient transfer of wealth. Our advisors can discuss your options and help you make informed decisions.
About Our Trust and Estate Tax Planning Services
Achieving your financial goals is a tremendous accomplishment that can help you sleep more soundly at night and protect your wealth legacy for future generations. Unfortunately, you can quickly lose those assets if you do not implement prudent wealth management strategies.
At HSC Wealth Advisors, our estate and tax planning services will help you preserve your assets from an undue tax burden while protecting them for future growth. If you have achieved your financial goals, don’t let them slip away with careless financial management.
Whether you choose to put your assets in a trust or you’re planning for your heirs, HSC Wealth Advisors can relieve your tax burden with sound investment and transfer strategies.
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The estate, tax and trust team at HSC Wealth Advisors can also help you move your assets into tax-efficient vehicles that will preserve your legacy. HSC Wealth Advisors has over 40 years of experience providing sound planning advice to clients on a fee-only basis that ensures your interests are put where they should be — first.
The estate, tax, and trust team at HSC Wealth Advisors can help you move your assets into vehicles such as tax-efficient mutual funds in Virginia, that will preserve your legacy. If necessary, we’ll partner with qualified tax and legal professionals to ensure the in-depth protection of your legacy.
An Independent, Fee-Only Financial Advisory Firm
Unlike brokerage firms that push sponsored products on clients in exchange for fees, HSC Wealth Advisors only recommends ETFs and no-load, no-transaction-fee mutual funds that preserve your capital. We only accept fees for our advisory services — we never earn compensation to force our clients into specific products.
Our fee-only policy avoids conflicts of interest and ensures that we keep your best interests in mind. We take our fiduciary standard seriously, and we recommend only the investment vehicles that provide the most cost-effective returns.
6 Additions to Estate Tax Planning
Effective income tax reduction strategies involve three basic principles — reducing taxable income, increasing deductions, and taking full advantage of tax credits. Here are six methods for lowering your tax bill and reaching your financial goals:
1. Use a Health Savings Account (HSA)
If you have a high-deductible insurance plan, you can contribute some of your income to an HSA for tax-deductible contributions and tax-free interest.
You can use the funds in your HSA for medical and dental expenses and qualifying additional costs, such as over-the-counter medications, without paying tax on your withdrawal. Unlike a flexible spending account, the money in an HSA is yours forever and will roll over year to year. You can also wait to withdraw funds for prior medical expenses until retirement for a tax-free source of income.
2. Optimize Your Contributions to Your Retirement Account
Every dollar you put into your employer-based 401(k) and 403(b) retirement account is not subject to taxes until withdrawal, and you will receive a deduction for every year you contribute to the account.
By waiting until you retire to access the funds in your retirement account, you will move into a lower tax bracket. Since you will no longer earn a paycheck, your retirement account may be your main source of income, resulting in lower taxes. To take full advantage of your retirement account’s benefits, contribute up to the maximum amount each year when possible.
3. Invest in Companies That Pay Dividends
Your income from your job is subject to ordinary income tax rates, resulting in increased tax rates for higher earners. Capital gains, however, are subject to lower tax rates. Being aware of this distinction creates opportunities for tax benefits.
By investing in companies that pay qualified dividends, you can receive the full tax advantage to help build up your wealth over time. Dividends are also less volatile than other stocks for a reliable payment method against rocky markets and inflation.
4. Execute Your Estate Plan
Estate planning is an essential aspect of financial planning. If you pass away without a will, the state will classify your estate and assets as intestate and follow specific procedures for distributing inheritances. Depending on your state’s intestate succession protocol, your loved ones may not receive the funds they need.
By drafting documents that reflect your wishes, you can ensure your assets and estate remain safe and end up in the right hands. The most common estate planning documents include:
- Will: A legal document expresses your last wishes regarding the distribution of your property and assets.
- Trust: A legal three-party fiduciary agreement allows a trustor to give a second-party trustee the right to hold property and assets on behalf of a beneficiary.
- Guardianship: A section of a will establishes guardianship, including what should happen and who should care for your children and other dependents if you pass away or are no longer able to care for them.
- Financial Power of Attorney (POA): A legal document indicates who can handle your financial affairs.
- Durable Power of Attorney: A legal document gives legal rights to another person who can handle non-medical and non-health-related affairs, even if you become incapacitated.
- Advance Health Care Directive (AHCD): An advanced health care directive indicates any medical actions that should be taken if you sustain certain medical conditions or if you’re unable to make your own decisions.
While you plan your estate, you can establish a donor-advised fund that puts you in control of when and how much to donate to specific charities. As you contribute to your donor-advised fund, you can claim full tax deductions on your return and reduce your taxes. You will receive a deduction each time you contribute to this fund, allowing you to reduce taxes on present and future returns.
5. Pay Property Taxes Early
If you have not reached the maximum deduction for your property taxes yet, it may be beneficial to pay taxes early. Some states and counties offer discounts for paying early, allowing you to save money on the front end.
Your specific deduction and benefits you may receive from paying taxes early will vary between individuals. For example, if you were the sole proprietor of a business and know you will retire in the next year, you can maximize your deductions by paying your property taxes early. Before exploring this option, it is beneficial to speak to a member of our estate, tax, and trust team to learn which deductions you may qualify for.
6. Establish Your Primary Residence
Tax residency planning can help you reduce your income tax if you own properties in multiple states. Income tax can vary between states, and some states may have little to no state income tax, such as:
- Wyoming
- Washington
- Texas
- Tennessee
- South Dakota
- New Hampshire
- Nevada
- Florida
- Alaska
If you own property in a state with low income tax rates, consider making that property your primary residence. Our estate, tax, and trust team can help you determine individual residency requirements for each state you own property in and help you determine if this strategy is beneficial for your needs.
Why Choose Us for Tax-Efficient Estate Planning?
The team of estate tax planning professionals at HSC Wealth Advisors provides our clients with a combination of expertise, superior credentials and a commitment to integrity and results.
In addition to trust, estate, and tax planning services in Lynchburg, HSC Wealth Advisors also offers comprehensive advisory services that can help your family grow retirement assets, plan for education expenses, analyze insurance needs and provide for charitable giving.
At HSC Wealth Advisors, our mission is to build lasting client relationships that grow and protect your assets while enhancing your lifestyle. We put your family’s needs first.
Contact HSC Wealth Advisors for Tax and Estate Planning Services in Lynchburg
Want to learn more about trust planning services? To get started, contact our estate and tax planners in Lynchburg. We’re ready to help you create and protect a lasting legacy for your financial achievements.
