Do you need an estate plan that covers more than paying your debts and leaving property to your loved ones? Advanced estate planning goes beyond basic estate planning by offering additional options for your assets and beneficiaries. There are four reasons to create an advanced estate plan.
You Want to Protect Assets
If you want to protect your assets from lawsuits of your own or your families or from a family member’s divorcing spouse, you can use advanced planning to safeguard your estate holdings. This protection can last through your lifetime and that of your loved ones.
You Want to Create a Legacy
If you want to create specialized ways to leave funds and property to your family members, you may prefer a legacy plan. This allows you to create lifetime trusts for each beneficiary or even a dynasty trust to pass wealth on to future generations.
Legacy planning allows you to spread funds across many years and avoid having one person spend it all at once. This type of planning also allows you to leave funds for charity. Charitable trusts can save you money in taxes while you support a cause.
You Want to Lower Estate Taxes
You can use aspects of Advance Estate planning such as Irrevocable Trusts to save money in taxes. When you place cash or property into an irrevocable trust, it no longer belongs to you and will not be taxed with the rest of your estate upon your death. This could save your family a bundle in estate taxes.
Reduce the Burden of Probate
With estate planning, Trusts are common. Revocable and Irrevocable Trusts both allow your possessions to pass easily to your loved ones. This can help your family avoid or shorten the probate process since this type of Trust does not need to go through probate to transfer property to beneficiaries. Probate will however; be needed for any property that has not been funded into a Trust.
If you have questions regarding your estate planning needs, please contact Wilcox Attorneys, PA online or by calling us at (479) 443-0062.
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