Even if you or a loved one is not a millionaire, it’s still important to plan and take some estate planning for high net worth families seriously. If you are like most Americans today, the value of your estate can be diminished by a bankruptcy, civil judgment, repossession, or even a mortgage default. For this reason, planning now can be critical to the continuity of your assets and affairs in the face of these kinds of circumstances. Although it is possible to save money by doing things on your own, some aspects of estate planning may be overlooked without the help of an estate attorney.
Estate planning attorneys can assess your assets and determine what legal steps should be taken to protect them. They can also advise you on how to legally handle situations where your loved ones become incapacitated or cannot manage their affairs.
Several qualified professionals can provide estate planning services. Small law firms and family law offices offer a wide range of planning services. Some of these include general legal assistance with wills and trusts, probate, and estate planning, as well as adoption planning and guardianship and juvenile law planning.
Pre-Election estate planning for high net worth families
There are a few basic things you should know when it comes to estate planning. The most important thing to do is make a list of everything you own, including how much money you have, your bank accounts, retirement accounts, stocks and bonds, properties, vehicles, and other personal assets. You may not know how much money you have right now but at least get a good estimate. It is also advisable to list all your investments, including real estate and retirement plans. You can save this information along with copies of your tax returns. Most importantly, keep copies of wills and legal documents.
Once you have this information together, you will need to determine your goals for asset protection. Do you want to use asset protection to provide financial security for your family? Are you looking for a tax break? How about to ensure your future?
If you are looking for financial security, you may not need to use estate planning at all. High net worth means that you have a large sum of money – think millions – that you would like to be left to your loved ones when you pass away. If this is the case, then it may be prudent to simply leave your assets to your children or another relative. If you want to use this strategy to get a tax break, then you will need to put aside a large sum of money in a separate account. The IRS has specific rules about how much money should be put into a trust and how it can be used for asset protection.
12 Key Points of estate planning for high net worth families
The 12 keys of estate planning for high net worth families include understanding and documenting the assets that you own and the extent of your debt. Debts can be the most difficult to protect because they are not liquid. They are also not tied to assets like mortgages. This means that the heirs cannot immediately take possession of the assets should the owner die. For this reason, keeping good records and being prepared is essential.
Second, You have to think about your inheritance when you die. A will as high net worth individuals are highly determined because your wealth distribution will be shown later. Ensure you take care of the legal documents regarding your will so that everything will be recorded and distributed properly when the time comes.
You must have a trusted LPA (lasting powers of attorney) to determine your future steps, ensuring your estate planning runs according to the conditions you want with the expected benefits. An LPA will provide you with comprehensive instructions and advice on the estate planning strategy. Talk to your property lawyer about this, so you’ll understand more about real estate law.
Ensure your inheritance tax planning will get the full benefit for those you leave behind. You also need to consider the capital gains tax because you need to ensure your wealth is transferred in a complete tax-efficient way.
Don’t forget to have an international high net-worth estate planning, if you have a global lifestyle. This will help you to manage your estate to be secured from the tax across multiple locations. You need to have trust to help you to pass your assets securely and safely. Trusts can help you protect your assets, which will be a crucial part of your inheritance tax planning. The trustees will manage trust with the wishes of the will’s owner.
Next, you need to have business succession planning to ensure your business is still going around after you die. Identifying the right leader and giving your high net worth estate planning strategies to them. Don’t forget to combine your will and trust to help your family and your future leaders to ensure what you leave behind will provide as you want to.
Appoint the right estate administration or the right executor to handle the process. Some issues will delay your will, like probate. Ensure you have the right guy or the right firm to manage your estate administration quickly and efficiently.
There’s a lot of things that you need to consider, like dealing with your homes and your family’s home, establishing a charity, and giving advice to those who will provide your wealth after you’re gone.
5 estate planning for high net worth families mistakes
There are many common mistakes made when people are planning their estates, and one of these mistakes is to try to handle everything themselves. This can be done very easily by hiring a planning attorney who has the knowledge and experience to help you plan your estate. Many people think that if they make a will that their wishes will be granted, but in reality, only a will is legally binding. Creditors or other individuals can take you hostage by making yourself the legal beneficiary of your assets.
Another mistake is not using trusts for supporting your will, not advising your future leaders in your business, and having outdated wills. The worst mistake is when you do not involve your family members when you have estate planning.
There are many reasons why estate planning is so important when it comes to high net worth families. One of these reasons is because the assets that you leave behind will be irreplaceable. When you die, your will states that the following individuals will receive your property: your children, spouse, parents, and any siblings you may have. Using planning services, you can ensure that you name your beneficiaries correctly, which will ensure that they get their fair share of your assets. While it is true that you can do things on your own when it comes to planning your estate, consulting with a qualified attorney about your options can ensure that your family gets to enjoy their inheritance without struggling financially.
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