Wealth is a central factor behind estate planning. Deciding on how to value your estate in Connecticut calls for some strategy on your part. However, an estate shouldn’t just be planned out for when you die. Your estate can generate more profits, reduce your taxes and mature your assets now. Here’s a better look at how wealth is preserved with a suitable estate plan.
Invite others to the conversation
Every estate has beneficiaries. These are people, agencies and even pets that receive the assets placed within an estate. Speaking with the beneficiaries of your estate now gives them an objective to work with. You want your beneficiaries to be responsible enough for the assets you bequest them. Inviting others to talk about your estate also gives you perspective.
Strategize the will and trust
A will isn’t effective if it’s written with nothing to protect it from an appeal. Your will doesn’t cover everything you own, but the assets it holds might come under fire during probate. To keep your wishes in a will honored, a strategy for your current possessions must be in place. These strategies are easier to implement when you have both a will and a trust. One protects your assets through privacy while the other can subdue public sentiment with gifts and accounts. Here are some of the assets to account for in a will or trust:
- Life insurance: Term life insurance is a strategic option for building future wealth. With it, you set a term for how annuities get paid to the person or agency of your choice.
- Real estate: Depending on their use, properties that enter trusts receive tax protection before being received by a beneficiary.
- Businesses: A business succession plan keeps the strategy of your business intact after you die.
Now is the time to prepare a plan for protecting your wealth. Your estate will encounter taxes, but the burden can be eliminated or reduced with a bit of forethought.