In order to minimize gift, estate, generation transfer and income tax, a person would undergo estate planning in anticipation and arrangement during his or her life, so that the management and disposal of his or her estate is done while still alive and at death.
Also, estate or legacy planning is described as the process of transitioning wealth to incentivize gift distributions. People are usually intrigued and interested about the concept of this planning once they learn about it.
In order to plan for a legacy or estate, most of us would want to know the amount of money we should have to qualify to this process.
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. Normally, we have our wills to serve their purpose, however, when it comes to complicated issues like having step children, grown child dependents, second marriages, charitable donations and other family situations, this may not as effective as estate planning.
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. Be informed that a trust is an amazing tool of estate planning that can solve a wide range of your possible inheritance issues.
In setting up a trust, you will be involving the assistance and services of an estate planning attorney who will base it on the needs of your family. Depending on the total value of your estate, the cost of creating a trust will be computed based on this figure.
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.