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News
ESTATE PLANNING: AVOIDING THE REDUCTION OF INHERITED ASSETS
Sleeping on estate planning can lead to a reduction of up to 20% of inherited assets.
Among the main factors are the Tax on Inheritance and Donations (ITCMD), which ranges from 2% to 8%, as well as legal counsel fees, court costs, and registry office charges arising from probate proceedings.
Well-structured estate planning allows the mitigation of these expenses and ensure that assets are preserved for future generations. In addition to reducing costs, it facilitates the management of the probate proceedings and provides greater financial stability for the family.
Among the most commonly used instruments are life insurance – exempt from income tax and offering immediate liquidity – and private pension plans of the VGBL type – income tax rate can be as low as 10% and, like with life insurance, is outside the purview of probate proceedings. It is also recommended to anticipate part of the succession in life, a measure that prevents ITCMD from being levied twice.
Estate planning is not just a tax strategy, but a way to protect one’s legacy and ensure peace of mind for the heirs. Therefore, making decisions today is the best way to ensure efficiency in the entire inheritance process tomorrow.