Par professionalfinance8 le 21 Août 2020 à 13:35
Wealth management is a hard task for people who always rush behind their works, it is not only because they do not have much time to concentrate on wealth management. Majority of people would hire a wealth manager or financial advisor to manage all their wealth. When it is said a wealth manager it is a common fact known to all people is they are a person who capable to manage all your wealth and does help in investments using real wealth strategies. But in reality, a wealth manager does beyond these works and they do other essential things which have to be done for your family such as,
- Retirement planning
- Legacy planning
- Insurance planning
- Trust planning and services
- Estate planning
- Legal financial planning
Likewise, the list keeps on going, thus how a wealth manager does all sort of work done by a financial advisor, manager, and asset manager. However, among all these listed works people are more concentrated in estate planning but at the same time, they are lagging on information too.
Do trust really needed for estate planning?
As it said before there are lots of confusion that prevails among people regarding estate planning some might think estate planning as their death will. Do some even think estate planning does need a trust? This is one of the common facts spread among people. In reality, estate planning is not death will it is one of the processes in the wealth management where you take control over your asset. Estate planning is a process to ensure the legacy and all financial affairs in your lifetime and in your absence. All your insurance, pensions, assets, real estate, belongings, cars, and debts everything is a part of the estate.
Generally, the estate planning is done via will where the person who owns the estate writes his concern will to whom the estate belongs in the future and should sign them. But there are a lot of misuse and wrong concerns mentioned in the will so as an alternative way people can use estate planning trusts. You may think do estate planning trusts are necessary ones? Obviously Yes! But it is always better to go with estate planning via will and trusts. Here are some of the advantages of having estates planning via trusts are listed below.
Asset split: When the estate planning is done via trusts it may be public or private, all the assets can be minimized or separated by a lender. Where in the will it not be re-written when the owner is physically or mentally ill.
Minimum Tax: By doing estate planning via trust the taxes are less while transfer when compared to estate planning via well.
Asset safety: estate planning via trusts is high security for assets because if any bankruptcy is financial crises the assets belong to trust cannot be claimed.
The only backdrop is in having trust way the assets would be handover to children only at a certain age. Thus why most of the wealth manager advises having will and trust estate planning trust.
Top essential planning documents:
Even though if you are doing estate planning via will & trust the planning documents is an important task in financial management. In common many people think it is critical to go with estate planning documents but it can be made easy when you understand the estate planning documents and its working. By knowing them you can have a better choice from them need to discover them, here is the topmost documents are explained below:
- Last Will and Testament
- Living Will
- Financial Power of Attorney
- Living Trust
Last Will and Testament: This is the common way of a document where the owner writes a legal document on how the property and all assets should be distributed. The owner can mention anyone it may be his / her family, friends, or even charity. In the case of the minor nominee, a guardian is allowed to mention in the document.
Living Will: Living will is also known as health care proxy when a person is ill and need health care support then he/ she can go for a living will where they are allowed to mention health care power of attorney which is valid till they are in health ill.
Financial Power of Attorney: As an addition to last will the financial power of attorney should be mentioned where the owner can designate any trustable person to manage all assets until a specific time. Here the person has the right only to manage assets and not to enjoy them.
Living Trust: The major advantage of doing this is to avoid probate court, the probate lasts for 3 years where you supposed to pay 10% of the estate value. Here the tax is minimized.
However, if you are doing last will and testament document, then you should be aware of having estate planning for dummies. If you are wonder what does it means, for example if a person write will on own which cannot be re-written further so making dummies sheet would safeguard you. To be clear if your will holds your family where you need to mention the child even if there is no such one. It is mainly because there may be a chance to have a child in your family after your death as per will the inheritance shouldn’t break up.
Does digital estate planning need to be done?
Most people would be confused about whether to mention digital estate planning? Yes, you need to mention them too. Digital estate planning is nothing but planning will for all your digital assets which include all electronic belongings, online bank accounts, documents, and other assets. However it is not that difficult to plan, it can be mentioned when you draft your will. In case if wish to provide all your digital assets to you anyone you should be clear in mentioning them in specific. If not all insurance claims, retirement funds, investment accounts all come in digital assets. So digital estate planning is a necessary one, the only thing is people should be specific and clear enough to mention the assets who really want that. professional finance
Suivre le flux RSS des articles de cette rubrique
Suivre le flux RSS des commentaires de cette rubrique