Another Component of An Estate Plan is Educating the Heirs
Having a plan for your estate will help your family to have a comfortable and secure future. You can plan to ensure that you are not taxed on your assets during your lifetime and that your children are provided for after you pass away. Keeping family wealth is a challenging task. Preserving family wealth involves planning. The first step is to have an estate plan, which should be written. It should include a fully executed last will. It should also include trust.
The trust can be used to manage the family's assets while reducing estate taxes, protecting assets from creditors, and specifying how the assets are used. An older family member can take his or her children to a financial advisor to discuss family wealth investments. This may include charitable donations, higher education, and startup business. Some children may even wish to join a family business. The younger generation needs to understand the process of wealth creation. Many families don't have a clear understanding of what investments work. Go to this website https://www.linkedin.com/company/two-spruce-law/
They also don't understand the risk associated with investments. It’s also important to have open discussions with the family. Many families experience the "shirtsleeves to shirtsleeves" phenomenon, wherein wealth is lost within three generations. Providing for surviving spouses and children in estate planning can be a daunting task. Fortunately, there are a few simple steps that you can take to ensure the surviving spouse and their children are looked after in the event of a tragedy.
This can be done using a variety of tools and techniques. These include a well-thought-out will and a trust, or a combination of the two. In the case of a trust, the surviving spouse can be a beneficiary of the trust during their lifetime, or a beneficiary of the trust after their spouse's death.
