Although they may differ in size, everyone has an estate. Your estate is your home, your savings, your car or anything else with value. Estate planning is more than just having a will that defines who gets what, it focuses on controlling how that estate is transferred. No matter what size your estate may be, proper planning allows you to control how your assets will be distributed after you die, and it ensures that your assets will go to the people you want, in the way you want, and when you want.
When it comes to financial planning, most people focus on accumulating and protecting their assets, but very few think about how those assets will get to the people they most want to receive them. We all hope to leave a legacy, but the truth is that a successful investing life can result in many unwanted burdens for your heirs. With an average estate tax rate over 50%, how sure are you that your heirs will get what you spent your entire life building? Will your children be able to pay the taxes associated with your legacy. Will the charity of your choice receive all that you left them, or will a large portion of it go to paying estate taxes?
By taking a few important steps, you can feel peace of mind knowing that your assets will be directed to the loved ones or charity of your choice, without creating unnecessary financial stress in an already difficult time.
- Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses.