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What Is an Estate Strategy?

What Is an Estate Strategy?

July 13, 2020

This is a common question. An estate strategy is a plan for your assets, health, children, and finances. Estate strategies are not limited to your income, as anyone can benefit from having an estate strategy in place. In this article, we will go over whether or not it is necessary to have an estate strategy and what the benefits of having one are. Keep reading to learn more!

Is an estate strategy necessary?

Another common question we hear a lot is if estate strategies are really necessary. While they are not required to have, they are helpful and good to have, regardless of your financial status.

What goes into an estate strategy?

Depending on your preferences, an estate strategy contains your will, assets, a living trust, a Power of Attorney, and other legal documents that pertain to your life and the future of your assets.

What are the benefits of having an estate strategy?

Typically, when people hear “estate strategy,” they think of death. While this is a valid, common assumption, this type of financial plan does not only have to be put in place in the case of death. Estate strategies can help you while you are alive, too! Having this type of plan set in place can help protect you and your assets in the case of an event that leaves you unable to make an important life decision by yourself.

Another benefit of having this type of financial plan ready for when its necessary is that the government will not be the one to make decisions on your behalf—your family members, or other beneficiaries, will have control over how your assets are transferred and manage when you pass away.

Not only are estate strategies beneficial for future planning, but they are also great for avoiding fees and taxes when transferring wealth in the case of death. By including this in your estate strategy, the taxes you owe or that your estate owes can be minimized if properly outlined in your estate strategy.

As for your family’s continued wealth, this type of strategy can be beneficial, as life tends to throw curveballs, such as the coronavirus pandemic. Right now, we highly recommend putting together an estate strategy to protect your family’s wealth now and in the future. One way estate strategies do this is by, “by removing your name from your assets and putting them into legally-protected vehicles, such as trusts or limited liability entities” (Forbes).

We know that this information might be difficult to come to terms with, as planning for the future of your assets when you pass away is not a task on everybody’s to-do list. However, we are here to make this process as easy as possible for you. To learn how we can help you get your estate strategy put into place, give us a call at 301-652-9677.