Properly planning, protecting, and passing along your estate to your heirs is one of the most vital elements of your financial well-being. Customizing a strategy to meet long-term desired goals and needs will ensure your estate is passed on as you desire. As a legal resource provider, we can refer you to qualified legal professionals.
Declare Who Gets What
If you fail to prepare, the law will determine who inherits your assets. This includes nonfinancial assets as well, from precious heirlooms to trinkets.
Choose How It Should Be Spent
If you plan to allocate assets to cover specific expenses, you may need to create a Trust that includes such provisions. For instance, you might want to mark specific assets or amounts for certain individuals or a college fund.
Minimize Estate and Income Taxes
If you anticipate that your beneficiaries will owe estate and income tax on the amounts they inherit, you might be able to minimize these taxes by using tax-effective strategies. For instance, you could leave taxable assets to charities if they are included in your list of beneficiaries, and leave your tax-free assets, such as Roth retirement accounts to your other beneficiaries.
Offset Taxes with Life Insurance
Your beneficiaries could lose a significant amount of their inheritance to estate to taxes. This can be offset, however, with the proceeds from tax-free life insurance.
Work with a Team
Working with a qualified team of advisors can help to design and create an estate plan that is fitting for both you and your beneficiaries. An estate planning attorney, a tax professional, and a financial advisor can help you to create and design a plan that performs for a lifetime.