Strategies To Consider When Estate Planning
You may think that starting the estate planning process is the hardest part. It is important to know that every decision you make after you begin the estate planning process is extremely important. You will want to take close consideration of each person in your life and who you want to designate as your beneficiaries. Once you do this, you can sleep easier knowing that your money or assets are going to the right people. However, is it as simple as wanting your estate to go to the people you love, writing it down, and calling it your estate plan? It is truly not that simple and it is important to understand that there is more that goes into it and you may wish to seek legal help from an attorney you can trust.
What kinds of things should you keep in mind while estate planning?
There are several things that a lawyer, like an estate planning lawyer from a law firm like Klenk Law will want you to know as you are starting the estate planning process. One of the first things to consider is where you want your assets to go. More specifically, are there certain people you want your assets to go to? You will want to name the right people as your beneficiaries when estate planning and when doing so, consider how to give your assets strategically. This could mean so that you can:
- Allow your spouse and children to continue living carefree if you pass away
- Reduce the amount of taxes owed
- Ensure you have enough set aside to cover any debts you may have
- Have peace of mind that you have named an executor to manage your estate affairs when everything needs to be distributed correctly
What should I consider when I want to give while I am still alive?
Determining if you want to give during your lifetime is not an easy decision. For example, you can avoid paying gift tax if you choose to pay for your grandchild’s tuition for their school by paying the academic institution directly. This kind of payment would not be taxable. You could also use the money to go toward your loved one’s 529 account to help with your loved one’s educational needs. You can also choose to help your child or grandchild by investing in their Roth IRA. You should speak with your lawyer about how this may avoid the gift tax and benefit your loved ones.
For more information on estate planning strategies, reach out to a trusted lawyer today.