Distributing your Estate at Death - Protect the Children
You have worked hard throughout your professional career building your estate. Perhaps you worked two or three jobs all your life or maybe you inherited your fortune. Nevertheless, you should be very careful when proceeding to design an estate plan in case of your death. Two major considerations that need to be addressed in unison are estate taxes and providing for your children. The primary question is, “How will you disburse your assets to your children and what is the best way to save on estate taxes so your children can inherit more of your assets.”
There are various vehicles that can get you where you want to go with respect to saving estate taxes and distributing an estate to your preferred beneficiaries. Establishing an irrevocable trust for your estate is one of the more popular choices.
Assets transferred and titled to the irrevocable trust for the benefit of children are generally exempt from probate proceedings. There are a number of benefits to establishing an irrevocable trust. A trust, unlike a will, is a private document that will keep your distribution plans confidential. Your family will not have to incur unnecessary costs that arise during probate proceedings when a trust is administered. A trust can save you money on estate taxes when designed properly by an experienced Estate Planning attorney. The property that is in the trust will pass automatically to beneficiaries instead of suffering through a long probate proceeding. In essence, a properly designed trust is an effective way to protect your estate from creditors, keep your intentions private and achieve your desired results of tax planning and post-death estate disbursements.