Estate planning is a process that plays a significant role in safeguarding your future, as well as the future of your cherished loved ones and closest family members. By proactively creating a comprehensive estate plan, you are not only ensuring the orderly distribution of your assets after death or incapacitation but also providing a clear roadmap for your intentions and desires.
Here are helpful asset distribution strategies that can be employed in estate planning:
Trusts
A trust is a legally binding agreement that allows individuals to transfer their assets to a third party, known as a trustee. This trustee is responsible for managing and utilizing the assets for the benefit of specific beneficiaries. To set up a trust, it is necessary to create an official document called a trust deed, which outlines the terms and conditions of the trust. It is important to remember that the terms of a trust cannot be revoked or amended once it has been executed.
Irrevocable Gift
An irrevocable gift is simply an asset or sum of money that has been given by one person to another without any legal obligation to return or pay back the amount given. The gift giver must be certain that they are comfortable with the terms of the gift and that no strings are attached.
Joint Ownership
Joint ownership is a legal arrangement where two or more individuals share ownership of assets, and their rights and responsibilities regarding the asset are intertwined. This arrangement is commonly observed in situations where partners, spouses, or siblings come together to collectively own a property. By sharing the ownership, these individuals not only pool their resources but also share the benefits and obligations associated with the asset. This type of ownership fosters collaboration, unity, and shared decision-making among the co-owners, ensuring a harmonious and mutually beneficial arrangement.
Wills
A will is a legal document that outlines how an individual wishes to distribute their assets upon death. This must be done in accordance with the local laws and regulations; otherwise, the instructions outlined in the will may not be enforced. Keep in mind that if someone dies without leaving a valid will, then their assets will be distributed according to the laws of succession in that particular country or state.
Charitable Donation
Charitable donations are generous contributions of money, property, or services given to an organization with the noble intent of supporting a charitable cause. Donating to charity is a great way to ensure that you’re giving something back and making a positive impact on society. Additionally, engaging in philanthropy allows you to avail yourself of tax advantages while ensuring that you are actively involved in making a difference in the lives of others.
Before making any decisions regarding asset distribution, it is crucial to consult with a financial advisor. Their expertise and guidance will help you effectively structure your assets for long-term security and maximum efficiency.
Work with us
Our professional planning services at Robert Emmer with Silversage can provide the advice and guidance you need to help ensure your financial success. Our team of experienced professionals specializes in providing comprehensive asset distribution and wealth preservation strategies tailored to each client’s individual needs, and we strive to provide the best possible solutions to help ensure that their legacy remains secure for years to come.
Contact us today to learn more about how we can help you.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author, and not necessarily those of Raymond James. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. Financial and investment planning inherently involve potential tax and legal implications, with which we are generally familiar. We do not, however, practice as lawyers or CPAs and cannot give specific legal or tax advice. You should always consult with your tax advisor, or your attorney, when making complicated legal or tax decisions, however, we’re glad to work with your tax or legal professional to help you meet your financial goals. Raymond James financial advisors do not render advice on tax or legal matters.