No matter how big or small your estate, estate planning is extremely important. Doing so will ensure that the right people inherit your assets. As we know, taxes are always a big issue in these types of matters. By properly planning in advance you can limit the amount of taxes your beneficiaries will have to pay. Estate planning is not simple so you should really consider hiring a avocat droit des successions. Here are a few estate planning tips to follow when going through this process.
Make It Clear Who Will Get What
Don’t let the law determine who will end up with your assets. Prepare a will or living trust so you can declare who will get what. This includes non financial assets as well. A non financial asset would be a piece of jewelry or a special painting your daughter has always liked. However, be very careful because the governing agreement might not properly govern your assets. Check with your financial institution to see how tax deferred retirement accounts and life insurance policies are handled.
Determine How The Money Should Be Spent
If you want some of your assets to cover certain expenses you will have to create a trust that makes that clear. For instance, you might want a certain amount of money to go towards the education of a certain individual. Whoever is named the trustee of the trust would be legally obligated to make sure that happens.
As stated before, taxes can be a really big issue when you are estate planning. If your beneficiaries will owe income or estate taxes on what they inherit you can use tax efficient strategies to lower the amount. One thing you can consider doing is list a few charities as beneficiaries and leave your taxable assets to them. You can then leave your tax free assets to your family members. Tax free assets include roth retirement accounts and life insurance.
Another thing you can do to help minimize the amount of taxes is do what is known as gifting. This is when you give a certain amount of money to your beneficiaries while you are still alive.