Estate planning and banking offers you the best way to protect your estate, ensuring you can pass on your wealth to your heirs when you pass away.
It is all about preparing to transfer your assets when you pass, and it also focuses on preserving and protecting assets so they go to your heirs. When you are gone, careful planning can make things much easier for your family members.
You definitely want to protect as much money as you can for your heirs, and here are a few steps that can help you accomplish that.
Make Sure Your Assets are Protected
Take the time to make sure you protect your assets. You can deal with lawsuits from many different people, and they can come from employees, neighbors, customers, or family members. Protecting your assets from lawsuits is important, and you can accomplish this by removing them from the reach of potential lawsuits.
Estate planning helps you take assets and place them in vehicles that are legally protected. When money is out of reach, the motivation of individuals to file a lawsuit often disappears.
Write Your Will
One of the most important parts of estate planning is writing a will. What is a will? Itâ€™s a document thatâ€™s legally enforceable, and it spells out the intentions you have for distributing your assets when you pass away. This allows you to allocate assets to specific parties in predetermined amounts that are included within this document.
Your will can also give you the chance to determine who you do not want to have your assets. It helps to reduce the stress on family members, since it shows how you want financial affairs dealt with once youâ€™re gone.
Trusts can be essential if you have a lot of assets to protect, and unlike a will, some types of trusts can offer you living benefits that help you keep assets protected, even while youâ€™re still alive. While there are many different types of trusts, there are two basic types with which you should be familiar, including:
- Living Trusts â€“ These trusts are set up while youâ€™re alive. Assets can be moved into a living trust, which helps you protect assets legally while youâ€™re still alive. Revocable living trusts can be canceled or amended. This allows you to retain control while youâ€™re living. However, irrevocable trusts cannot be changed by you and are the right option if your main concern is legal protection.
- Testamentary â€“ This type of trust is started when you pass away and itâ€™s funded by insurance proceeds or financial assets. It often offers even more protection than a will, since money is transferred after you pass away based upon the wishes youâ€™ve expressed in your trust documents.
Trusts offer a great way to keep assets protected from legal challenges so your money is there for your heirs when you pass away. While they cost more than creating a will, they provide the best way to transfer your assets once you die.
These steps can help you protect your money for your heirs, but remember, estate planning isnâ€™t a DIY project. You need a professional to help you with your estate planning and banking so youâ€™re sure everything is taken care of effectively.