When you have an estate of significant value, it is important to plan to protect your wealth. Planning in advance can help you avoid crisis planning so that there is always a plan in place regardless of what happens in your future.
High-asset estate planning is important because it helps you protect against tax liabilities and other issues that may affect your family in the future. With estate planning, you can protect inheritances for your heirs and beneficiaries, minimize your estate taxes and avoid probate.
There is no question that this process can be complex, which is why it’s so necessary to work with someone who understands the laws surrounding estate planning in your state.
Minimize your estate taxes
One of the main goals of estate planning is to minimize estate taxes. With good planning, you can. You can use options like giving away gifts or placing assets into trusts to minimize the value of your estate while passing on your assets.
In 2021, the estate tax exemption is $11.7 million. If your estate is currently over this value, you should consider starting on your estate plan and minimizing the value of your estate through helpful exemptions and legal options.
Plan for incapacity
It’s also a good idea to plan for incapacity. When you make a long-term care plan, consider how you’ll fund your long-term care and how to preserve your assets for your heirs. Using long-term care insurance is one way to protect your personal assets, but you may also want to look into gifting away some of your assets, passing on assets through trusts or using other methods of giving away your assets prior to incapacity.
If you do become incapacitated without a plan in place, there is the risk that you could spend down your entire estate trying to pay for your care. To avoid this, there are several options, like having a revocable or irrevocable trust, which take assets out of your name.
High-asset estate planning is about more than just protecting your assets. It’s about protecting your wishes and making sure your family and friends are cared for. Early planning will help put your mind at ease.