Helpful Tips to Protect Your Family’s Assets By Jonathan A. Mintz, Partner at Matsen Voorhees Mintz LLP
Key Takeaways • Many people do not understand the nuances of life insurance or why it is so important to have it. • Retain all important documents (such as tax statements, debt statements, an original copy of your will and insurance documents), in a safe place that is not impossible to but you should also tell someone else where they are. • Many believe that only the wealthy should set up trusts, but this is far from true; even those with modest estates benefit from establishing trusts. • The most powerful income tax strategies are often funded with life insurance.
One of the most pressing matters to people is protecting their family’s wealth. They understand they won’t live forever, and they want to make sure the assets they have worked hard to accumulate will be passed on to their survivors in the way they want, while maintaining and encouraging family harmony. If you are concerned about how to preserve your assets for your survivors, here are some tips to help ease your mind as a result of estate planning. Create an Estate Plan This may seem like an obvious suggestion, but over 50% of adults in America do not have an estate plan, and the default plan – the state’s plan when you don’t have your own – is typically nothing close to what people want for themselves and their family. In its minimum form, a Will can dictate who will control your assets and will also detail who gets what. It can designate a guardian for your children and also set up a trust for minor children, where they can gain access to the funds once they become a legal adult. However, a Will must go through a court proceeding called probate to become effective, and probate is an expensive and very public process. Thus, most people can from more than just a Will. Plan for a Time When You Cannot Make Decisions Many of us like to think we’re invincible, even when we understand everyone dies. But the odds are that, before we pass away, most of us will become at least temporarily mentally or physically unable to make our own legal decisions. By setting up the proper documents before this happens, you can make sure you are cared for in the manner you desire, and you can also protect your assets at a time when you are decisions. not personally able to make your own