When you spend so much time working for the assets in your possession, it makes sense to feel pride over how much you are able to leave behind for your loved ones after your death. In fact, this is a major reason why people begin looking into estate plans.
It is important to know what to do when designing your plan. When you work on your estate planning, you want to preserve as much as possible to pass on to beneficiaries instead of losing it to taxes and expenses.
Know when you need an estate plan
U.S. News discusses the best ways to keep assets in the family. The first thing to do? Shed the perception that only the wealthy elite need estate plans. Just having a retirement fund that you want to pass on is good enough reason to have a plan in place. After all, if you simply pass along a 401(k) or IRA account as-is, your beneficiaries will likely end up paying a high amount of taxes on it.
Instead, consider setting up an irrevocable or permanent trust. You can also convert your retirement or savings funds into Roth accounts to help cut down on the oncoming taxes.
Consider giving financial gifts
You can also gift assets while you are alive. You can give up to $15,000 a year as a gift per person. Though this brings down the value of your estate, it is tax-free to the recipient. You must simply plan wisely to ensure the lowered estate value does not harm you.
Handling matters of the estate may seem complex, but you can get through it with the right legal help. Consider contacting legal help if you have decided to proceed with creating an estate plan.