Family relationships have been known to suffer following a family member’s passing, especially those who primarily handle the finances and most related dealings. If you have the same role, it’s important that you ensure any fallout doesn’t happen following your passing. One of the most effective ways to do this is to work with deceased estate lawyers and create a solid estate plan. No need to put your family and surviving members through finance-induced stress.
Why plan your financial legacy?
You might think estate planning is just for the wealthy and elderly, but that’s a major misconception. Anyone who wants to future-proof their family finances can make one.
- A clear estate plan will eliminate the possibilities of family disputes, confusion, and any disagreements.
- Appoint guardians for younger children to ensure they’re taken care of after you pass away.
- Make it specific on how your children will acquire financial support.
- Identify ways to preserve your assets while keeping legal and tax fees to a minimum.
- Set up a special needs trust or support for special needs dependents.
With an estate plan, you can specify who gets what and when, and ensure your every wish is followed to the letter.
Key Estate Planning Tools & Strategies
To say that estate planning is complex is an understatement, what with all the documents and processes involved. This is why starting it as early as possible is highly recommended. Doing so also means you have everything in order in the event of an untimely passing.
Wills
All estate plans start with a will that outlines asset distribution, guardianship, and other concerns.
- Specify how your assets, real and digital, will be divided and distributed.
- Regularly update it, especially after major life changes.
- Choose and appoint an estate executor whom you trust.
Trusts
A trust is another channel for asset management and how it’s given to beneficiaries. When structured as a revocable trust, it often provides the dual benefits of privacy and potential tax benefits.
- Best used if you have a large estate and for the benefit of minor children and/or special needs dependents.
- With the possibility of skipping a lengthy probate, assets can be transferred much quicker.
- A trust is either revocable or irrevocable, depending on your goals and needs.
In addition, you need to designate beneficiaries, guardians, and a power of attorney as part of your entire estate plan.
Not everyone is comfortable dealing with an estate plan, but it is necessary in future-proofing your family’s finances and preserving your legacy. To protect the surviving family from a chaotic and financially insecure future, talk to Velocity Legal’s estate lawyers and start planning for the future now.
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