Posted by In our life, we spend more time on vacation planning, car purchase planning, and even dinner planning than we spend on wealth inheritance planning.We may even spend very little time deciding who will inherit our property.
Wealth inheritance planning is not a patent of super rich people, but a solution for us ordinary people to deal with complicated legal procedures.Without an advance plan, various problems and disputes after our accidental death may be time-consuming and costly, and will seriously impact the original lives of our lovers and children.
To take an extreme example, someone said, I don’t even have a house, I don’t have a retirement account of millions, and I don’t have valuables for future generations. What else do I do for property planning?However, as long as you live in the United States or are a tax resident in the United States, any property cannot escape the jurisdiction of the American social legal system. To avoid the cost of these jurisdictions and realize the control of wealth according to our will, we need to carry out wealth inheritance planning.
Listed 4 reasons for wealth inheritance planning, which can be used to avoid potentially disastrous consequences for children or relatives.
1. Avoid legal procedures for "certification"
The legal procedure for certification is Probate in English.Avoiding the legal process of "certification" is by far the most important reason for people to carry out wealth inheritance planning and estate planning.Why do you want to avoid this legal process?Because this legal process is time-consuming and costly, it will also temporarily lose cash flow capacity for inherited children or relatives.During the property verification process, neither our bank accounts nor cash can be moved.If the children have no income, they may not even have the ability to pay living bills at this time.Therefore, property planning is not only the "privilege" of the wealthy class, but also something that middle-class families need to consider.
United Stateslife insuranceGuide.com believes that privacy protection is also one of the most important reasons.Once we enter the legal process of "authentication", all of our asset information, heir information, and other privacy will become public court documents and can be found by anyone.
2. Reduce inheritance taxes
Another main reason for financial inheritance and estate planning is to reduce the large loss of personal estate due to the payment of state estate taxes or federal estate taxes.In order to reduce the inheritance tax, ordinary family couples can achieve this goal by setting up an AB trust or an ABC trust as part of a will or a revocable living trust.This structure can also effectively protect our property and reduce the risk of property encountering legal proceedings.
At the same time, withAmerican Life InsuranceSupported irrevocable trusts are also a common tool.
At this stage, families and individuals can adopt a wealth of estate planning schemes to reduce or even avoid estate taxes.
3. Protect children who are underage
No one wants to suffer accidents, but if we have underage children in our family, we also need to take precautions before they happen.This is also a reason for planning.
If we do not make advance wealth and estate planning, and do not make a will, then when we pass away unfortunately, then the court will intervene.At this time, the court will not only decide who will divide our property, but more importantly, the court will independently decide who will raise our children.
Therefore, if we want our children to be taken care of and grow up in the way we want, then we must make this plan in advance.
4. Avoid chaos within the family
An important reason why many people choose to carry out wealth inheritance planning and estate planning is that they see that after their friends or business partners pass away, they are inherited by others, and the issue of child support is inexhaustible and endless. In legal proceedings and quarrels, a lot of time and money were wasted, and family unity and harmony were lost.
We can appoint an agent or agency to be responsible for the situation after we incapacitate or pass away, and decide who can get what, when we can get it, and how we can get it after we die. In this part, this kind of planning helps to avoid expensive court probate procedures and effectively avoids costly struggles within the family.
insurGuru©️Insurance CollegeThis article lists 4 main reasons for wealth inheritance planning.If we want our property and family members to be protected after we die, then we need to make such a plan.If there is no such plan, our children and heirs will face tax pressure. At the same time, the court will intervene to distribute our wealth and determine the custody of our children.
