Estate or legacy planning is defined as the process of anticipating and arranging during an individual’s life, with the objective of managing and disposing his or her estate while still alive and at death, in order to minimize, gift, estate, generation skipping transfer and income tax.
Also, estate or legacy planning is described as the process of transitioning wealth to incentivize gift distributions. People are usually intrigued and interested about the concept of this planning once they learn about it.
To qualify to undergo to this process of estate or legacy planning, we usually ask the amount of money we need to have and this is because we do not have any knowledge of this activity.
Legacy or estate planning as a matter of fact is just an attitude towards wealth that we can use to help build character and life skills like rendering service or labor. This means that a person does not need to have much finances to start planning his or her legacy. 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. Normally, we have our wills to serve their purpose, however, when it comes to complicated issues like having step children, grown child dependents, second marriages, charitable donations and other family situations, this may not as effective as estate planning.
There is a lot more to protecting your wealth and the financial well being of your family, and this does not mean the mere dividing of assets, but more of providing your family members in a method that is responsible and is detailed enough to describe your situation.
Again, it is a misconception that trusts or estate planning is just for the rich who need to lower their taxes. Note that a trust is a flexible estate planning tool that can address your inheritance issues no matter how wide they are.
With the help and services of an estate planning attorney, the professional can set up a trust that speaks to the basic needs of your family. Note that some trusts will be priced out based on a percentage of your total estate value.
Trusts assigned to children will make a condition that will hold the assets until they become of age, and also a stipulation on what age and how much they can start receiving their pension.