Most people who build wealth throughout their life want to share it with their families. They want to leave a legacy for their children, grandchildren and descendants. If you have substantial wealth or assets, you may wonder how to ensure that your heirs receive their fair share.
An estate plan can ease your mind and save your wealth for your family.
Start with a trust
People with large estates may need to set up a trust to ensure no money becomes wasted. For instance, if you have a spendthrift son or daughter, you do not want him or her to receive an inheritance and waste it. A trust allows you to put restrictions on how you distribute it.
In addition, you can create a dynasty trust. The dynasty trust ensures that money and assets pass down from generation to generation. Likewise, those trusts remain protected from lawsuits, divorces and creditors.
Consider gifts for your family
Consider gifting to your loved ones to ensure your family receives the assets you want for them. You have complete control over what you gift another person, and you have an opportunity to see how the person reacts to the gift. You can give up to $15,000 per person every year in gifts. If you stay below $15,000, you and your family can worry less about estate taxes.
When you have an estate planning strategy, you can control your wealth in life and in death. Estate planning allows you to prepare for the taxes associated with different strategies.