The process of arranging and organizing your assets in a way that ensures their transfer according to your wish after your death is termed as estate planning. It is essential to make sure your assets are safe and that your loved ones are protected after you are gone. A study states that after the pandemic, more than 50% of people now take part in estate planning.
Most individuals, especially those with a high net-worth, find it tricky and challenging because of its complications. Also, this industry constantly evolves with new regulations which makes it difficult for normal people to keep up. Thus, working with an experienced lawyer is vital in such situations. In this post, we’ll learn how to choose the ideal estate planning strategy for your wealth and assets.
Choosing the Right Type of Estate Plan
Estate planning is really complex involving difficult terminology and rules. Some people find it hard to deal with emotional topics like death, incapacitation, etc. Some people also think that as they have less assets, they don’t need an estate plan.
This is wrong, as it’s important for your financial future as well as your family’s protection and guidance. You must know how to choose the right estate plan for yourself, and an estate planning attorney can help you with it.
Keep Your Financial Situation in Mind
Whether you have a big investment portfolio or just a simple savings account, your estate plan depends on your finances. Many people don’t worry about estate taxes, but there are several assets which your beneficiaries could benefit from.
These include retirement funds, real estate properties, annuities, bonds, stocks, safe deposits, and more. Your current financial situation and decisions will affect your beneficiaries later, so you have to keep this in mind.
Are You Married & Have Children?
Each person has a unique family and there is no blueprint to follow to plan your estate among your family members. You have to think about your family and how you wish to provide for them after you are gone. Your estate plan helps achieve many goals other than just financial help.
You can name a guardian for your kids, allocate assets to protect your loved ones’ needs, express how your family should be taken care of, name trustees to ensure fair distribution of assets, design an inheritance plan, etc. Proper estate planning ensures that your family will be taken care of as you wish.
Know Difference Between Irrevocable & Revocable Trusts
There are two common trust types when it comes to estate plans. An estate planning attorney will help you choose the better option out of the two. In a Revocable trust, you assign a chosen trustee to manage certain assets. You can either fund it as long as you live or you can revoke it anytime. In this trust type, you are the trustmaker, trustee, and the beneficiary.
In an Irrevocable trust, you put your assets into it but cannot modify or revoke it after it’s created. No one likes losing their property, and these trusts protect the eligibility of long-term care programs. They allow Insurance Trusts to pay taxes from inherited accounts, while Domestic Trusts shield assets from predators, creditors, and third-parties.
Consider Your Health, Business & Properties
Due to old age or illness, there comes a point where a person can’t make rational decisions about his well-being and health. You must understand how this will affect your business, how you will manage your finances, and what type of healthcare you wish to get in such situations.
These are important questions, and with an estate plan, your family members can follow a proper road map. It also ensures that all your wishes and rights are respected even when you are gone. Create a succession and partnership share plan for your business. For your properties, create deeds to ensure smooth transfers to your beneficiaries.
Conclusion
A proper and ideal estate plan is important for your peace of mind as well as for protecting the financial future of your family members. Contact experienced estate planning attorneys like Challae T. Porter who will help you weigh your options carefully, and draw up the best estate plan for you.
Right from choosing your beneficiaries to completing paperwork, you will have proper assistance at every step. This ensures that your loved ones don’t have to worry about anything even after you are gone.