We often hear how important it is for us to start preparing for the future, particularly when it comes to our assets. Without a thorough estate plan in place, your children or other relatives may end up in a bitter dispute over the family home or other valuable property. However, according to a survey by WealthCounsel, a majority of Americans feel that estate planning is confusing and they do not have a will or trust in place.
Experts suggest that one of the best ways to distribute your wealth is to create a trust. You can adjust the terms of the trust to fit the needs of your family. For example, you can list your children as your beneficiaries and make sure that they do not receive your assets until they turn 25. You can also prevent your kids from wasting the money you leave them by specifying how the money should be used, such as putting it towards college. By establishing a trust, you can help your family avoid probate court and save then time and money.
Sun City residents with 401(k)s and IRAs should consider transferring their funds into an IRA trust. Any assets in this type of trust will be protected from bankruptcy. Your trustee will manage all withdrawals and make sure that your money goes to the right people at the right time.
The complexities of estate planning can be intimidating. However, you should not let those challenges stop you from protecting your assets and providing for your family. If possible, discuss your options with an estate planning attorney and other financial professionals to make sure your assets are taken care of when you pass away.
Source: CNBC, “How to start thinking about an estate plan,” Sharon Epperson, Jessica Dickler, Nov. 21, 2017