In order to minimize gift, estate, generation transfer and income tax, a person would undergo estate planning in anticipation and arrangement during his or her life, so that the management and disposal of his or her estate is done while still alive and at death.
Also, estate or legacy planning is described as the process of transitioning wealth to incentivize gift distributions. People are usually intrigued and interested about the concept of this planning once they learn about it.
To qualify to undergo to this process of estate or legacy planning, we usually ask the amount of money we need to have and this is because we do not have any knowledge of this activity.
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.
Let us again emphasize that estate planning or trusts are not just for the wealthy who are just thinking to minimize 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.
With the help and services of an estate planning attorney, the professional can set up a trust that speaks to the basic needs of your family. Note that some trusts will be priced out based on a percentage of your total estate value.
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.