The main focus of your Connecticut estate plan is to safeguard assets to pass on to your heirs after you have passed away. Although many people automatically think of creating a trust for holding property, you have additional options for doing that. These are the best ways to transfer assets.
One of the easiest ways to transfer your assets to your loved ones is through beneficiary designations on financial accounts. Naming beneficiaries on your IRA, 401(k), life insurance policy, investments, savings accounts and annuities can ensure that the funds transfer directly upon your death. However, you will want to be safe and smart by naming an alternate beneficiary in case your first choice dies before you. It can help avoid problems later.
You can also pass on your assets by creating your last will and testament. This legal document allows you to name heirs who will inherit property and assets from you after you’re gone. While it doesn’t completely prevent the probate process from taking place, it can shorten it so that your beneficiaries get their inheritances sooner. After probate is complete, the executor of your estate will distribute your assets.
Your other option for transferring assets is through charitable giving. If you have a favorite charity or a few, you can add a provision to your will that states the amount of money you wish to give to charitable causes after you have passed away. This has a twofold benefit as you get to donate to a worthy cause and it can also save money on estate taxes.
These are some ways you can help protect your property and assets so that your heirs can inherit what’s rightfully theirs when you are no longer around.