Estate or legacy planning is defined as the process of anticipating and arranging during an individual’s life, with the objective of managing and disposing his or her estate while still alive and at death, in order 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. We have our wills as the traditional way, but these may not be as effective when a person is dealing situations like second marriages, step children, grown child dependents, charitable donations and other situations in the family.
There is a lot more to protecting your wealth and the financial well being of your family, and this does not mean the mere dividing of assets, but more of providing your family members in a method that is responsible and is detailed enough to describe your situation.
Be aware again of the fact that estate or trusts planning are not just made for the very rich who just want to get away with taxes. Be informed that a trust is an amazing tool of estate planning that can solve a wide range of your possible inheritance issues.
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. Be aware that the cost of creating a trust will be based on the total value of your estate.
Trusts assigned to children will make a condition that will hold the assets until they become of age, and also a stipulation on what age and how much they can start receiving their pension.