In order to minimize gift, estate, generation transfer and income tax, a person would undergo estate planning in anticipation and arrangement during his or her life, so that the management and disposal of his or her estate is done while still alive and at death.
Further defined as the process of using the transition of wealth to make gifts incentivize, legacy planning or estate planning is advisable for people with wealth. People are usually intrigued and interested about the concept of this planning once they learn about it.
In order to plan for a legacy or estate, most of us would want to know the amount of money we should have to qualify to this process.
You may be surprise to learnt that legacy or estate planning is like an attitude towards your finances that will serve as a tool to help build character and life skills, like when you are learning to work and give service. The fact is you do not need to have more than enough money in order to start your estate or legacy planning. Thus, for people with small funds that will not qualify them to have an heir, this action will be a big pat on their backs to head to that direction of financial plenty.
To protect your assets and for the long term financial well being of your family when you leave this world, what are critical are estate planning and trusts. The conventional wills do serve their purpose but may not be as effective when you are dealing with complicated matters like step children, grown child dependents, second marriages, charitable donations and other family conditions.
Protecting your wealth and the financial well being of your family is not just splitting your assets, but you have to realize that it is about the provision of your family members with a responsible decision that can speak in detail to your particular case.
Be aware again of the fact that estate or trusts planning are not just made for the very rich who just want to get away with taxes. Your inheritance issues can be solved no matter how wide the range is, and this is through a trust which is a flexible tool of estate planning.
In order to set up trusts, you would need the assistance and services of an estate planning attorney who can create a trust for your family. Depending on the total value of your estate, the cost of creating a trust will be computed based on this figure.
In setting up trusts for children, will hold the assets assigned to them until they become of age, and can even be stipulated on how much and at what age they can start receiving their funds.