Many people cringe when they think about estate planning. It's a common misconception that estate planning is a time-consuming and difficult task. That school of thought may just keep you from finishing this important business before it's too late. You certainly want to ensure that your loved ones are taken care of after you are gone, and there are several popular estate planning techniques that an attorney can assist you in setting up today.
- Irrevocable Life Insurance Trust
You purchase life insurance for the peace of mind it gives you in knowing that you are providing for your loved ones even after you have passed away. However, these insurance benefits are often greatly diminished due to estate taxes. When you choose to set up this type of trust, you will actually be able to prevent your life insurance proceeds from being subjected to inheritance tax laws. This ensures that your loved ones will have access to the full amount of your life insurance policy. - Children’s or Grandchildren’s Irrevocable Education Trust
Education is important, and many parents and grandparents want to make sure the children in their lives are ensured a complete college education. This type of trust will make this a reality even if you pass away before these children get to college age. It can be set up to pay the yearly college expenses whenever the time comes. - Revocable Living Trust
This type of trust allows you to avoid probate while setting up specifically how you want your property managed and divided, and it also allows you to change your mind during your lifetime and completely change the terms of the trust as needed. Utilizing this type of trust will likely keep anyone from challenging your last wishes, and it gives you the flexibility to make changes as your life situation evolves. - Annual Gift Tax Exclusion
Many people want to leave a gift to their children, grandchildren or close friends, but it is easy to forget about the fact that these gifts are taxable. This particular estate planning technique can allow you to leave a gift to your loved ones without the worry that they will have to pay estate or gift taxes.
These are just a very few of the many options you have when you are ready to take care of your estate planning. You will find it much easier than you may have thought, especially if you contact an estate planning attorney to help you out. Let the attorney know what you would like to see done, and he or she will be able to show you the best options for your particular situation. Make an appointment with an attorney today, and you can enjoy the peace of mind of knowing that nothing has been left to chance.
