Estate or legacy planning is defined as the process of anticipating and arranging during an individual’s life, with the objective of managing and disposing his or her estate while still alive and at death, in order to minimize, gift, estate, generation skipping transfer and income tax.
Further defined as the process of using the transition of wealth to make gifts incentivize, legacy planning or estate planning is advisable for people with wealth. Once people have understood the concept of legacy or estate planning, they are usually interested and intrigued with it.
In order to plan for a legacy or estate, most of us would want to know the amount of money we should have to qualify to this process.
Legacy or estate planning as a matter of fact is just an attitude towards wealth that we can use to help build character and life skills like rendering service or labor. This means that a person does not need to have much finances to start planning his or her legacy. And so, for those individuals with even a meagre income and cannot imagine having an heir to their money, this process will have an extra push to strive to go to a higher level of financial capacity.
Know that with estate planning and trusts, you will be protecting your assets and the long term financial well being of your family after your death, and this is a critical matter. Normally, we have our wills to serve their purpose, however, when it comes to complicated issues like having step children, grown child dependents, second marriages, charitable donations and other family situations, this may not as effective as estate planning.
You have to realize that protecting your wealth and financial well being of your family is not a mere dividing of assets but about providing your family members in a way that is responsible and can describe the details in your particular situation.
Again, it is a misconception that trusts or estate planning is just for the rich who need to lower their taxes. Your inheritance issues can be solved no matter how wide the range is, and this is through a trust which is a flexible tool of estate planning.
In order to set up trusts, you would need the assistance and services of an estate planning attorney who can create a trust for your family. Be aware that the cost of creating a trust will be based on the total value of your estate.
In setting up trusts for children, will hold the assets assigned to them until they become of age, and can even be stipulated on how much and at what age they can start receiving their funds.