Protect Your Assets With These 3 Estate Planning Techniques
While many people focus on growing their assets in order to bolster their retirement funds or purchase a new home, it’s also important that you take steps to protect your assets and estate. An effective method for protecting your wealth is by engaging in estate planning, which will allow you to pass your wealth to your heirs when you die. (See the infographics here.)
Write a Will
The first and likely most important step towards protecting your estate and the assets within is to create a will.
A will is a legal document that details how you want your assets to be distributed at the moment of your death. You can be very precise with your will, which gives you complete control over which beneficiaries receive specific assets. Having a will in place should also lessen the stress that your family members go through in the months following your death. Keep in mind that a will can be officially prepared by an attorney, which reduces the possibility that you make a mistake.
Focus on Protecting Your Assets With Estate Planning Techniques
While protecting your assets shouldn’t be too difficult, there’s always a possibility that a lawsuit will be filed against you, which makes it more likely that you could lose some of your assets.
Whether a lawsuit is filed by a neighbor or customer of yours, protecting your assets ahead of time should allow you to avoid losing all of your hard-earned money if a lawsuit occurs. When you engage in estate planning, it’s possible to protect your assets by placing them in legally protected vehicles. (Read about tips to secure your children’s financial future.)
Consider Creating a Trust
If you have a significant amount of assets within your estate, you’ll likely want to create a trust, which will make it easier for you to protect these assets. While a will is only used after your death, trusts can help you protect your assets when you’re alive. The two primary types of trusts include living trusts and testamentary trusts, the latter of which is only created when you die.
Because of the benefits provided by a trust, they will cost much more to create when compared to a will. If you need assistance in determining which type of trust is right for your estate, you may consider retaining the services of a trust administration lawyer in Las Vegas.