During a person’s life, he or she will conduct the process of estate planning which is described as the anticipation and arrangement of the management and disposal of his or her estate while still alive and at death, so as 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. Thus, for people with small funds that will not qualify them to have an heir, this action will be a big pat on their backs to head to that direction of financial plenty.
Know that with estate planning and trusts, you will be protecting your assets and the long term financial well being of your family after your death, and this is a critical matter. 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.
You have to realize that protecting your wealth and financial well being of your family is not a mere dividing of assets but about providing your family members in a way that is responsible and can describe the details in your particular situation.
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.
With the help and services of an estate planning attorney, the professional can set up a trust that speaks to the basic needs of your family. Note that some trusts will be priced out based on a percentage of your total estate value.
Setting up trusts for children means holding the assets until the children becomes of age, and a stipulation on when and how much they can receive some funds can also be stated on the trusts.