News For This Month: Resources
During a person’s life, he or she will conduct the process of estate planning which is described as the anticipation and arrangement of the management and disposal of his or her estate while still alive and at death, so as to minimize gift, estate, generation skipping transfer and income tax.
Further defined as the process of using the transition of wealth to make gifts incentivize, legacy planning or estate planning is advisable for people with wealth. There is an interest and intrigue that people would feel once they have understood the concept of estate and legacy planning.
To qualify to undergo to this process of estate or legacy planning, we usually ask the amount of money we need to have and this is because we do not have any knowledge of this activity.
Maybe hard to believe, but the truth of the matter is that legacy or estate planning is described as an attitude that will serve as a tool to help build character and life skills like when you are learning about labor and service. In other words, a person does not need to have much money in order to start his or her legacy or estate planning. And so, for those individuals with even a meagre income and cannot imagine having an heir to their money, this process will have an extra push to strive to go to a higher level of financial capacity.
What is critical is to protect your assets and the long term financial well being of your family after you pass away, and this you can prepare through estate planning and trusts. The conventional wills do serve their purpose but may not be as effective when you are dealing with complicated matters like step children, grown child dependents, second marriages, charitable donations and other family conditions.
You have to realize that protecting your wealth and financial well being of your family is not a mere dividing of assets but about providing your family members in a way that is responsible and can describe the details in your particular situation.
Again, it is a misconception that trusts or estate planning is just for the rich who need to lower their taxes. Your inheritance issues can be solved no matter how wide the range is, and this is through a trust which is a flexible tool of estate planning.
In order to set up trusts, you would need the assistance and services of an estate planning attorney who can create a trust for your family. Note that some trusts will be priced out based on a percentage of your total estate value.
Setting up trusts for children means holding the assets until the children becomes of age, and a stipulation on when and how much they can receive some funds can also be stated on the trusts.