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.
Also, estate or legacy planning is described as the process of transitioning wealth to incentivize gift distributions. 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.
You may be surprise to learnt that legacy or estate planning is like an attitude towards your finances that will serve as a tool to help build character and life skills, like when you are learning to work and give service. The fact is you do not need to have more than enough money in order to start your estate or legacy planning. For those with just meagre income, this activity will serve as an inspiration to attain that direction.
To protect your assets and for the long term financial well being of your family when you leave this world, what are critical are 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.
Protecting your wealth and the financial well being of your family is not just splitting your assets, but you have to realize that it is about the provision of your family members with a responsible decision that can speak in detail to your particular case.
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. Be aware that the cost of creating a trust will be based on the total value of your estate.
In setting up trusts for children, will hold the assets assigned to them until they become of age, and can even be stipulated on how much and at what age they can start receiving their funds.