California citizens who have a high net worth need estate planning more than ever. While at first glance, estate planning and what’s involved may be extremely overwhelming. However, it’s a necessary step in ensuring that your assets are properly handed down to future generations.
Estate planning helps to protect against tax liabilities
When it comes to asset protection, one of the best ways to do it is to protect against tax liabilities. Estate planning can allow you to set up different items like a revocable living trust, where you can keep your assets safe from any extravagant tax liabilities. It’s important to speak to your attorney about trying to avoid various types of taxes, including income taxes, estate taxes, gift taxes and generation-skipping taxes. While it’s unlikely that you’ll be able to avoid all of these taxes, you can help to minimize their amounts for your heirs.
While you may not want to think about any life-changing events that may incapacitate you in the future, it’s important to plan, just in case. When you have a plan of action available, your heirs and others around you will know what your wishes are regarding medical treatment and your finances. This will help to ensure that your end-of-life wishes are properly fulfilled.
The probate process is one in which a person’s will is verified by a court of law. This process tends to take months to years for those who had a high amount of assets upon their death. By properly undergoing the estate planning process, you can help to avoid your will going through the probate process. This will save your heirs a lot of time and money.
While you may not want to think about your death, it’s important to ensure that your assets are properly handed down to your heirs. By undergoing the estate planning process, you can help to ensure that your heirs don’t have to deal with probate and your wishes are looked after if you become incapacitated. It’s time to quit avoiding this necessary step in life and embrace it for the betterment of your heirs.