When it comes to estate planning, everyone needs a plan, and you need the proper tools to implement that plan. Are you wondering what tools you need for your strategy for the future?
Sometimes, people who work with estate planning can assume that people already know what tools estate planners use to help their customers. If you have ever been curious as to what some of these are, you have come to the right place.
Keep reading to learn more about the best estate planning tools you can use to help with the future you envision.
Will
Creating a will lays out how you will distribute your estate and who will take care of your minor children if you are no longer able to do so. You can also choose who will be the executor of your estate. Be sure to include all important details such as names, addresses, contacts, and instructions regarding the handling of your finances, real estate, and personal belongings.
Always make sure to keep an updated copy of the will and notify the appropriate person of its existence and content. It is also important to update the will when needed, especially when family and relationships change.
Life Insurance
Life insurance can be an essential part of your estate planning. This will help ensure that your loved ones are taken care of in the event of your passing.
So, it is important to research the different types of policies available to find the one that is best for you. Understand the difference between permanent and term life insurance.
This tool can replace any income your family would have lost due to your passing. This can be especially helpful if one of the breadwinners passes away.
Also, cover any outstanding debt to prevent any of those debts from being passed on to your family members. This can help cover funeral expenses, as well as any payments of estate taxes.
Trust
Trusts are an important estate planning tool used to create an owner-controlled asset management and distribution plan. They can help reduce potential estate taxes, protect assets from creditors, and transfer wealth in an organized way. There are different types of trusts as follows.
A revocable living trust allows the grantor to make changes to the trust whenever they wish and records transfers of assets into the trust. An irrevocable living trust is very permanent once it’s created.
Charitable trusts are ideal for those who wish to donate to charity after they’ve passed away and can be written to distribute assets over time.
Another one is a slat trust. Many are wondering what is a slat trust. This trust allows the surviving spouse to receive income from the assets that were originally set up for them by the deceased spouse.
This income is for everyday expenses, such as healthcare, lifestyle costs, and housing payments. This also allows the assets to remain in the trust, which can provide continued income and asset protection.
Choose Estate Planning Tools That Are Right for You
Estate planning can be daunting, but understanding your goals and understanding the different estate planning tools available will help you develop a plan that fits your needs. With help from a qualified attorney, you can make the right decisions for yourself and your family.
Speak with an expert today and make sure your estate plan is in place.
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