It seems that the more money and wealth you have in Greenwich, the more problems that come with it. When it comes to estate planning, if you do not plan things out right, your loved ones could end up with far less than you intend for them to inherit due to taxes and other expenses.
No matter how you earned your wealth and assets, it is important for you to use estate planning to your benefit to protect it. Here are strategies you can use to ensure that everything you own gets distributed according to your wishes.
1. Verify your beneficiaries
A will cannot govern some of your assets. Any retirement and bank accounts and life insurance policies you have go directly to beneficiaries upon your death. Review your beneficiaries frequently to ensure that those assets go to who you want them to. If you change your mind and do not update them, the individuals you want to receive those assets will not.
2. Establish a trust
Your wealth is your legacy. If you are not sure if your loved ones are responsible enough to manage it, set up a trust. When establishing your trusts, be sure to choose an individual or a professional entity to act as the trustee. By including stipulations and duties, you can still control the management of the trust assets. There are several types of trusts. Each one has different benefits and tax considerations. You may want to consider setting up an irrevocable trust because it shelters assets funded to it from estate taxes. Keep in mind that you are no longer the owner of assets that you title to an irrevocable trust: The trust is the owner.
Estate planning for the wealthy is not always easy. The more assets and money involved, the more strategies, provisions and considerations you will need to protect them. Wealthy individuals should consider seeking out professional estate planning assistance to ensure there is no diminishment of their wealth and assets.