Estate Planning

Estate planning is basically a series of instructions that help ensure that your wishes are carried out during and after your death.

The goal of estate planning is to prepare for an uncertain future by ensuring:

· Your assets are organized

· Taxes and other expenses are kept to a minimum

· your assets are distributed as you wish, and

· You retain privacy and control

Asset protection

Wealth preservation

Assets held under a testamentary trust are held by a trustee (whom you appoint) for the benefit of your named beneficiaries. Therefore, the beneficiaries do not own the assets of the trust, they only obtain corresponding benefits from the assets. This structure provides protection to your beneficiaries should another party seek to take possession of their assets should they become embroiled in future disputes such as bankruptcy or family law.

Vulnerable Protection

A testamentary trust is a useful tool for preserving intergenerational wealth. Trusts are created to ensure that only immediate descendants and blood relatives benefit from the trust structure, preventing in-laws and extended family members from gaining the benefit of these assets.

Tax Saving

You can also protect vulnerable beneficiaries by separating control and benefits of your assets. This can be done by appointing an independent individual to be the trustee of the trust, rather than the beneficiaries themselves. When an independent individual is appointed as the trustee, there is a clear demarcation of control and benefits, allowing the trustee to make appropriate and informed decisions about the estate.

Flexibility

Owning assets through trusts is an effective way to minimize taxes, not avoid them. When beneficiaries receive inheritance in their own names, they can pay capital gains tax at their personal profit tax rate. Beneficiaries under the age of 18 are considered adults for tax purposes. That means they could get $18,200 before taxes.

Speedy inheritance

The testamentary trust structure allows you the flexibility to distribute any income gains, capital gains, and dividends from the estate in the most tax-efficient way possible. You can distribute the above assets to your beneficiaries to keep the taxes as low as possible.

Assets held in a trust are legally owned by the trustee on behalf of the beneficiaries. Thus, a trust avoids possible delays associated with the legal process of deciding who will administer your estate upon your death. Instead, a trustee can distribute your wealth quickly and easily.

privacy protection

Wills must be made public and can be challenged. However, a trust is a private agreement that can help keep wealth private when leaving wealth to specific individuals in complex family structures.