Art of wealth Preservance
People, throughout their lives, work hard to create asset for their loved ones. But they don't plan the way the assets should be passed on to the next generation. What will happen to these assets on your unexpected demise? This is the concern for most people. So, estate planning comes to the picture. It is not only meant for the ultra rich but for everyone. This is not a post-retirement or post-demise exercise. Everyone should be ready for contingencies and prepare well in advance. So, with estate planning, devolution is well managed.
As wealth creation is an art, so is wealth preservation. Unplanned and unstructured estate planning leads to wealth destruction, leading to unhappiness and discontent in our own life as well as in the lives of our loved ones.
Here is a list of items every estate plan should include:
- Will/trust
- Durable power of attorney
- Beneficiary designations
- Letter of intent
- Healthcare power of attorney
- Guardianship designations
In addition to these six documents and designations, a well-laid estate plan also should consider the purchase of insurance products such as long-term care insurance to cover old age, a lifetime annuity to generate some level of income until death, and life insurance to pass money to beneficiaries without the need for probate.
A will is a great place to start, but it's only one of the component of estate planning. Estate planning ensure
- Provide for your immediate family
- Ensure property goes to the right beneficiaries
Minimize the expenses and taxes.