The prosperity of the family and the increase in wealth are impossible without drawing up a well-thought-out strategy regarding business, investments, property management, etc. A mandatory component of a long-term strategy should be legacy estate planning. It guarantees not only the transfer of all assets of a family member who leaves this world to their heirs but also the realization of their last desires after death.
Why Is Legacy Estate Planning So Important?
Taking care of the one who gets the assets owned by a person is essential for a variety of reasons:
- Guaranteeing that the property will pass to the relative or another person whom a legator sees as the successor;
- Reducing tax payments for beneficiaries by choosing the most optimal tax scenarios for the transfer of property;
- Eliminating the possibility of intra-family disputes over the division of the estate.
Who Should Take Care Of Legacy Estate Planning
Treating legacy planning in a balanced and careful way is important for any person who owns certain assets. However, it is most significant for those legators who:
- have a business or invest in some projects;
- possess considerable wealth;
- live with a big family;
- have a serious illness or another reason to fear incapacitation or premature death;
- want to transfer part of the capital to charities.
To be sure about the smooth transfer of your property to those you love, take advantage of consulting with reputable financial advisors. With over 20 years of experience and comprehensive expertise, Certuity Company provides legacy estate planning services to help you achieve the highest level of security for all your assets.
What Are The Consequences Of Avoiding Making A Legacy Estate Plan?
Some people prefer not to think about a possible death and, therefore, do not pay serious attention to the issue of transferring property. However, this can lead to a whole range of adverse effects that can destroy what has been created for years.
- The absence of a will sets in motion intestacy laws, which means that all property will be divided according to the laws of the state. Therefore, the business may end up in the hands of one of the heirs who have neither entrepreneurial talent nor the desire to engage in business. A valuable collection of paintings or books that you would like to donate to a museum or library may go to a descendant who does not understand and does not appreciate art or literature and, therefore, will easily sell them cheaply to resellers.
- In addition, entering into inheritance rights, beneficiaries must pay significant federal and state taxes. If you do not take care of ways to reduce estate taxes in advance, they will not be able to receive the maximum value from the transferred assets. And this will significantly reduce the chances of your business or another non-commercial project continuing at a decent level.
Stages Of Building A Legacy Estate Plan
Creating the most effective estate transfer plan is a long-term process that you will return to periodically for a variety of reasons:
- The emergence of additional property, business, or investments that must be taken into account;
- Transfer or sale of part of the assets or their loss;
- Changing the plans of family members to whom you are going to entrust your property;
- The emergence of new heirs, etc.
As reality changes all the time, the legacy estate plan has to adapt to all the new twists and turns. However, the initial creation of the plan involves several important steps.
Tasks to Be Solved
|Determining the goals
|Identifying priorities and developing a general vision of family affairs, continuation of the business, non-profit projects, etc. without your participation
|Inventorying of assets
|Drawing up a detailed list of all assets owned, as well as liabilities and possible debts
|Choosing beneficiaries and heirs
|Distributing your property among those whom you see as beneficiaries and heirs. Consulting with them to understand how ready they are to continue the business or non-profit projects you have started.
|Consulting on the issue of tax reduction for your heirs, as well as optimization of the transferred property
|Preparing all the necessary documents, fixing your will, and submitting them to the estate administrator.
How To Optimize Legacy Estate Plan Preparation
A large number of specialists are involved in the creation of a legacy estate plan. They must take into account all financial and legal issues of property transfer. In order not to turn to numerous consultants, explain your specific situation many times, and devote yourself to all details and issues, it is better to contact a reputable company that provides comprehensive preparation and implementation of the legacy estate plan. Certuity company ensures that every step of the planning process is carefully and responsibly considered: from analyzing property and developing documents to preparing the next generation for ownership.
Legacy Estate Plan Is Drawn Up…What’s Next?
Once you have made all the decisions, distributed the assets, completed the paperwork, and notified the heirs and beneficiaries, you can be sure of the smooth transfer of your property. However, this is not a reason to stop developing business projects, investments, and other things. Certuity company offers the services of an Outsourced Chief Investment Officer (OCIO), who will help increase your assets by investing them in profitable projects. Since this will significantly increase the property transferred to descendants, you will be confident in their successful future.
The legacy estate plan protects not only the material values of the legator, earned and accumulated throughout life, but also moral values and goals. Having drawn up such a plan, you can be sure that the projects to which you have dedicated your life will find a worthy successor. And if you don’t have an entrusted person, this plan will become an occasion to think about such a person, find them among relatives, colleagues, or friends, and prepare them for the important mission of continuing your business and other projects.
Abdul Aziz Mondol is a professional blogger who is having a colossal interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, he loves to share content related to business, finance, technology, and the gaming niche.