Estate planning is the process of accumulating and disposing wealth before the death of an individual or estate owner, including married couples. It's aim is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. Now you have created and preserved your wealth, sometime in the future you may want to transfer your wealth to your estate after you die.
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I. Definition
Transferring your wealth to your estate is a final phase in estate planning. At this phase, careful planning will minimize the tax paid and avoid any unnecessary conflict among designated beneficiaries.
II. Estate transferring
Many people misunderstand that transferring your asset in estate planning is for older people only. In fact, transferring assets are for anyone who have some wealth building up and some people may die young, while everyone will die sometime in future.
1. Writing a will
A will is a legal document that the testator signs and is witnessed by 2 people that he or she indicates how you want your wealth to be distributed upon your death to his or her designated beneficiaries.
2. Maximize your wealth and avoid unnecessary taxes
As this point, you might have an estimation about your estate. You may already have sizable insurance and investment accumulated in your universal life insurance which will be used to pay off any tax resulting in capital gains from other investments which have to be liquidated upon your death. You may already transfer some of the asset to the joint tenancy with the right of survivor to ensure that someone who you love may have the asset upon your death.
3. You may already have hired a professional lawyer to ensure that your asset will be distributed without causing conflict among your designated beneficiaries.
4. You may want to distribute some of your assets to charity organizations after your death.
5. You may want to dispose some of your assets through gift or trust during your life time.
6. You may want to establish a testamentary trust to ensure that your disabled beneficiary will have income for at least 21 years.
7. You may want to establish a spouse testamentary trust to ensure your spouse can receive income in the future years.
Your executor whom you appointed in the will will distribute the rest of your assets after paying taxes, fees, funeral expenses and debts to your designate beneficiaries.
I hope this information will help. If you need more information or insurance advice, please follow my article series of the above subject at my home page at:
http://medicaladvisorjournals.blogspot.com
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
Tuesday, January 6, 2009
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