If you are fortunate enough to become wealthy during your lifetime, then you need to focus on estate planning early in life. As a family with many assets, estate planning will help you prepare for the future.
For any family, creating an estate plan is one of the most important things you can do. Having a solid financial plan provides you with time to prepare for long-term care and to take advantage of tax strategies that can help you prevent taxes from taking a portion of your fortune or impacting your beneficiaries negatively.
What is the importance of planning for taxes on your estate?
Planning for taxes is essential. You need to focus on your financial goals and to set up trusts or to discuss gift limits each year so that you can reduce your estate’s value. If your estate is worth more than $11.4 million (individual) in 2019, anything over that exempted amount will be taxed by the government.
Talk about insurance in your estate plan
Insurance is also something to discuss with your attorney and add to your estate plan. Life insurance and other benefits may pay out directly to a beneficiary, but you should still discuss this with your attorney if you’d like the funds to go into a trust or to be protected in other ways.
Estate plans can be complex, but with the right help, you can make sure it protects your rights and your assets. Our website has more on estate planning and what you can do to prepare your estate for the future.