Minnesota couples who have significant assets want to protect them for their children and future generations. An estate plan is a legal tool that can preserve your assets, reduce your tax liability and leave a financial legacy for your heirs and chosen beneficiaries. The best way to ensure that your family benefits from a lifetime of hard work is to protect your assets with a well-researched and smartly constructed estate plan.
Three elements of a good estate plan
Estate planning takes into account your past experiences and current needs while anticipating your future financial needs, including your retirement income. If you are middle-aged or younger, your future financial needs and ability to generate income might change drastically. Additional children, a shift in your career or a divorce are among many significant events that truly are life-changing in nature.
Older adults who are nearing retirement years have a much stronger idea of what their personal needs will be through retirement and what kinds of assets they can protect. Their family status is generally stable, and their career earnings are much clearer, which makes it easier to use an elderly client’s past experience, current situation and future plan to figure out the best tools for protecting an estate.
Common tools used to protect estates
Professionals in estate planning often use tools like a last will and testament, trusts, proxies and the power of attorney to protect financial and substantial tangible assets. Financial assets include retirement accounts, investment accounts, annuities and life insurance policies. Tangible assets include real property like your home, business, vehicles and other real property that might have substantial value. A collector of rare and valuable items might place them in a trust for safekeeping and preserve them for heirs, for example.
No matter what types of assets you have, estate law may be much easier when you have a licensed professional available to guide you through the process. This may help to secure your retirement and leave a financial legacy for your heirs.