What Are The Main Goals Of Estate Planning
Estate planning concerns you, the individual still alive and in charge of your property, and the people who will ultimately be in the order of or inherit your property. Your desires and the course of the future are at stake.
After collaborating with clients to create estate plans, we have considered fundamental shared aims, which include taking care of cherished ones, minimizing taxes, avoiding or limiting probate, ensuring the equitable distribution and good management of assets, safeguarding assets, and making incapacity plans.
This article will represent the most typical estate planning goals, and you should keep them all in mind as you create your personal estate plan.
Goals and objectives for estate planning that you may want to think about
Here are some main goals or objectives for your estate planning.
Supporting Loved Ones
Of course, the main goal of any estate planning would be to ensure that our loved ones are taken care of if they are incapacitated or die away. Even though there are numerous additional goals to consider, they are all secondary to this primary purpose. There are many ways to do this, such as designating the beneficiaries of your various assets or appointing a guardian for the minor children and pets. The first thing you must decide when creating an estate plan is, “Have I taken good care of all my loved ones?”
We continue to live in a country with high taxes despite efforts at tax reform. Without proper planning, taxes may consume a sizable amount of your assets. Essentially, 40% of the value of every asset owned at death is the federal estate tax. Certain states still have death taxes, which can increase this sum. The federal income tax is nearly as high, and some states have income taxes that can be close to 10%. Moreover, this does not even include employment, sales, or excise taxes.
With smart planning, these taxes may be eliminated or minimized. It can help keep assets available to be held by the person’s family or, if you want to support specific philanthropic causes, through organizations. It can attain using several estate planning techniques. By establishing family-limited partnerships, keeping life insurance policies in trust, or designating specific beneficiaries for your legal papers, you can use these strategies to take advantage of inheritance tax advantages.
Avoiding or Mitigating Probate
The probate procedure may be costly; even straightforward probate might cost thousands. The procedure can also lead to family members arguing over property, ruining relationships, and costing many legal fees.
The effects of probate might be lessened or avoided with proper planning. Additionally, it can reduce the likelihood of property conflicts between heirs and third parties. Creating various trusts, drafting and signing legal documents to ensure that property goes without going through probate, and adding language to legal documents to deter property disputes are all examples of this planning.
You have put a lot of effort into building up your wealth. Lawsuits, divorces, and other occurrences can dramatically diminish the size of your estate. Assets may be vulnerable to creditors, and other parties depending on how they are held, titled, and transferred. It may even apply to the creditors of your heirs.
Planning can help you protect assets while also minimizing your exposure to liabilities. One option for separating assets from potential sources of liability exposure is to establish spendthrift trusts, trusts that protect foreign and domestic assets and corporate companies and structures.
Taking Care of Incapacity
The majority of us take our mental health for granted. We believe that we always have access to all of our mental abilities. However, the evidence presents a different image. According to the report, one in 10 people over 65 has dementia. With aging, this number rises dramatically.
Structure one’s affairs such that assets and personal matters are available in advance if the need should arise by planning for incapacity. For this, there are numerous estate planning strategies accessible. These methods aid in making sure that money is there when and if the need arises.
Additionally, they may ensure that the money is not wasted and won’t prevent the person from receiving Medicare and other benefits.
These approaches include giving instructions in advance. Suppose the person is unable to make decisions for themselves. These instructions may designate third parties to carry out their preferences in that case. These instructions cover everything from financial security and management to choosing a doctor.
Providing for the Effective Management & Care of Property
When someone passes away, their assets often disappear with them, in determining who gets what, inadequately handled assets. The value of possessions may significantly decline as a result. It frequently occurs whenever a business owner passes away. Without adequate planning, the company often had to close soon after the owner’s death.
Planning can help prevent this by ensuring that assets are appropriately managed during the probate process or transferred before the probate closes. It can also ensure asset distribution to the intended beneficiaries. Several methods exist, such as designating trustees and executors and providing detailed instructions, using deeds to transfer assets upon death, and using buy-sell agreements to share ownership interests in businesses.
What are estate planning strategies?
An estate planning strategy is an approach that facilitates the distribution of your assets and settlement of your estate according to your intentions. Depending on your goals and objectives, various estate planning strategies are available for you to choose from.
- Intestate succession. Suppose no other arrangements, such as a will or trust, have been made. In that case, the probate court will distribute your property to your heirs through the intestate succession laws. State law will determine the administration of your estate and the care of your young children. Only your stated preferences and interests follow if you provide written instructions. Making sure to avoid intestate succession may be one of the primary goals of your estate planning strategy.
- Last will and testament. A will is a legally binding document that lets you specify your wishes to distribute your assets after death, the executor of your estate, and the guardian of your minor children. The most crucial tool you have at your disposal is undoubtedly this one. Everybody who owns property or has children under 18 must have a will.
- Trusts. A distinct legal entity holds your assets in a trust. They are employed afterward for the good of one or even more persons (for example, yourself, your spouse, and the children). There are various trusts, each with a distinct function, including marital and charitable trusts. To establish a trust, you will require legal counsel.
- Will substitutes. A will substitute, such as a Totten trust or bank accounts payable on death designations, enables you to name a beneficiary for specific assets. Hence, they pass to them without going through probate after you pass away.
- Life insurance. A contract for life insurance specifies who will get the payouts in the event of your death. Most estate plans include life insurance.
- Tax credits, deductions, and exclusions. The federal government provides several helpful estate planning tools you might utilize. These include the appropriate exclusion amount, an unlimited marital deduction, charitable deduction, and split gifts. They also have the annual gift tax exclusion.
- Gifts. A gift is a property transfer you provide to family, friends, or a charitable organization during your lifetime rather than a genuine sale. Giving may be a fulfilling personal experience and a helpful estate planning strategy.
Hiring a Professional Estate Planning Attorney
As Las Vegas estate planning attorneys, we have handled cases where our attorneys had no planning done, or the strategy did not function as planned. It gives us a distinctive perspective when creating estate plans supporting clients’ objectives.
Are you looking to pass down your legacy to your beneficiaries or heirs to find peace when the time comes? For questions and more information, set an appointment or consultation now, or call us at (702) 388-9800.
For more information on how https://probateattorneyvegas.com/ can help you on your Estate Planning, please contact us at (702) 388-9800, or visit us here:
The Giuliani Law Firm
500 N Rainbow Blvd #300, Las Vegas, NV 89107, United States