3 Tips To Properly Plan Your Estate
Many people work hard to accumulate a certain amount of wealth over the course of a lifetime. If you have valuable assets, it's important that you take the time to think about what will happen to these assets after your death.
Estate planning plays a critical role in the distribution of a person's assets, and properly planning your estate can help ease the stress of your passing. Here are three tips that you can use to help ensure your assets will be properly accounted for after your death:
1. Bequeath strategically to help reduce taxes.
It's important to recognize that your loved ones could be left facing significant financial burdens once they inherit your assets after your death. Many of the assets that an individual may choose to pass on to a loved one are subject to taxation.
If you are looking for creative ways to help reduce taxes, then bequeathing your assets strategically can be beneficial. If you are planning to leave some assets to charity, ensure that the assets you designate for charitable use are the ones subject to taxation. Leave your loved ones tax-free assets like a ROTH or life insurance policy instead.
2. Define how the money will be spent.
Many people want to leave their loved ones an inheritance in order to help make life easier after their passing. If you have specific financial goals for your loved ones, then you can easily help ensure these goals are met through proper estate planning.
Rather than leaving your beneficiaries a lump sum of money, you should work with an attorney to establish a trust. Trust accounts allow you to allocate how the money will be spent. You can ensure that the financial resources you leave for your loved ones will be used to pay for schooling, a business, or the purchase of a home.
3. Assemble an estate planning team.
As you work to prepare your estate, it can be beneficial to have a team of professionals to advise you. Hire an attorney with experience in estate planning to help you ensure that your estate planning activities meet legal regulations.
Work with a tax professional to help you reduce the amount of money your loved ones will lose through income and inheritance taxes. Take the time to meet with a financial advisor who can help you create a portfolio that will be in line with your estate goals.
Proper planning is essential when it comes to the preparation of your estate. Be sure that you bequeath strategically to minimize taxation, define how you want your money to be spent, and work with a team of professionals to make estate planning easier.
Contact a law office like Seiler & Parker PC for more information and assistance.