Preserving your wealth and making the necessary preparations will undoubtedly benefit your heirs in the long run. However, many questions still arise, such as how many generations will your wealth last? Will your assets be taxed? This is why it is imperative to seek professionals to help you.
When a loved one dies, the assets that were previously unavailable are open for grabs for any distant family member or stranger. With proper estate planning, you can avoid this and have your assets gathered, managed, and distributed in the way you desire. Here are some practical tips you can take to protect your assets and prepare for the future of your loved ones.
Start Now
It is never too late to start planning for the future, but it is always better to start sooner rather than later. The last thing you want to do is leave something to chance when it comes to your loved ones and their assets.
Keep Accurate Records
When it comes to your assets, it is very easy to forget about them if you are not actively managing them. To preserve your assets, you must have records not just of your cash and liquid assets but also of other forms of your wealth.
Keep your records in a secure place and have them updated at least once a year. When writing documents, always include the location of your assets and the legal name of the person you are leaving them to.
Avoid Joint Accounts
Joint accounts are convenient for couples, but in the event of the death of a spouse, it is easy for an unscrupulous family member to take advantage of this. This can result in issues related to the loss of assets. Instead of setting up joint accounts, set up separate accounts.
Set Up a Trust
A trust can be instrumental in ensuring that your heirs won’t have to cope with tax obligations that come with inherited wealth. A trust is a legal entity that allows you to have control over assets no matter what.
A trust also gives you more control over deciding who gets what asset and where it goes. When preparing a trust, be sure to include a trustee who can help with managing the trust and ensure that it is being managed in the way you intend.
Choose Your Beneficiaries Carefully
It is easy to leave all your assets to your spouse, but this could cause problems if you divorce. To avoid this, choose your beneficiaries according to what you want.
If you don’t have a spouse, then it is best to choose your beneficiaries based on your relationship with that person. If you have multiple beneficiaries, you must be sure they agree with your choice, or they can legally challenge your will.
Check Your Estate Plan
It is best to check your estate plan every few years to ensure it still covers your changing needs. If you have already done this, then it is recommended that you make adjustments before you regret it.
In addition, you should update your accounts and the location of your assets. This will make tracking down your assets easier and more effective. Lastly, you should update your beneficiaries with the most recent information.
Review Your Will
In the event of death, a will is the only document that can legally transfer your assets to your beneficiaries. This is why it is crucial to review your will regularly to ensure it is still valid.
Conclusion
There may never be a good time to start planning for the future. However, the most important thing you can do is start planning for your future and the futures of your loved ones. It doesn’t take a lot of time, just the will and determination to begin planning your estate now.
For the best financial advice on the Gold Coast, turn to New Wave Financial Planning. We embrace the best technologies to tailor the advice process to each and every client. Get in touch today!
