People who don’t believe they need estate planning frequently ignore it. But with the right estate planning strategies in place, you can safeguard and keep your wealth over time.
In this article, we will explore some good estate planning strategies to help you boost your financial security now and into the future.
Consider Living Trust
One of the most effective estate planning strategies to use to shield assets from probate after death or incapacity is a living trust. This kind of trust enables a person to transfer their assets directly to a chosen beneficiary after their death or incapacity, avoiding the need for probate court and resulting in a quicker and less expensive transfer of assets. With a living trust, all necessary documents are ready before any kind of life change takes place, removing the concern of leaving surviving family members in the dark while they struggle to figure out what to do next in crisis or transition.
Write a Will
Writing a will is crucial to safeguarding and preserving your wealth for future generations as it assures that all assets will be allocated in accordance with your wishes upon death (or incapacity). Wills must be up to date and reflect any changes, such as a marriage or a child’s birth. Additionally, it is best to have them reviewed by a lawyer on a regular basis, particularly if local laws that are relevant to estate planning change.
Set Up Beneficiary Designations
Another way to protect your assets is through beneficiary designations for your life insurance policies, retirement accounts, and other assets. By doing this, a person can designate themselves as the beneficiary of each item, ensuring that they will receive it upon their passing without the need for a probate court process. Additionally, it avoids any potential arguments about inheritance among family members.
Establish Powers of Attorney
Another crucial estate planning strategy is the creation of power of attorney. If you become incapacitated, this agreement grants someone else the power to make choices on your behalf. This is one area where cutting corners could end up costing you in the long term, so it’s crucial to choose someone you can trust and have a lawyer draft the relevant documentation.
Give Gifts Throughout Your Life
Giving gifts while you are still alive is another option that can be used for estate planning. By doing this, you may be able to pay less tax on the value of your estate while still living and enjoy seeing your loved ones enjoy the gift.
Make Charitable Donations
Charitable donations can also be an effective tool when it comes to reducing the tax burden on an estate. Donations made during life can be deducted from taxable income, and donations made after death can help reduce the amount of taxes owed on the estate as well.
Talk to a Financial Advisor
When making an estate plan, it’s crucial to talk to an experienced financial advisor so that you are aware of all your alternatives and can choose the strategy that will best safeguard and preserve your fortune.
A financial advisor can assist you in identifying the best options for your situation and make sure that any strategies you use are compliant with local regulations.
If you have any questions or would like more information about effective estate planning strategies for long-term wealth preservation, be sure to talk to an experienced financial advisor who can provide you with tailored advice based on your individual needs and goals.
At Robert Emmer with Silversage, we strive to provide the best possible advice when it comes to wealth preservation. We also understand the importance of setting up a strong foundation for long-term prosperity, which is why we offer comprehensive estate planning, investment strategies, retirement planning, tax optimization, gifting strategies, and more. Our team of experienced advisors can help guide you through the process.
Our goal is to provide you with financial confidence to relieve your stress and worry.
Let us show you how our wealth management services can be of assistance! Contact us today for more information.
Any opinions are those of Robert Emmer and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Every investor’s situation is unique, and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.