Why is Estate Planning Important?

The answer to the above question is simple: it gives you peace of mind. Planning your estate is much more than just disbursing your wealth and asset for when you are gone. It is about securing your legacy long after you have died.

Many people, afraid of the prospect of death, avoid settling their estates. Doing this, however, causes myriad problems long after they died for their family and friends. Therefore, it is crucial to put your home in order as soon as you can. No one knows tomorrow. You can make provisions for the safety of your estates and properties by writing a will or using a specialist trust. Whatever you use, make it quick.  You can find estate planning services near oceanside

Another advantage of estate planning is that it helps you to avoid inheritance tax. It is a tax that has to be paid once an individual dies and is calculated against their assets' current value. Inheritance tax can be costly, and in some cases, it cuts down your assets by almost half. What this implies is that you cannot leave much for your family after your death. You can check with an estate planning consultant in downtown San Diego if you need one.

How can you avoid paying the inheritance tax?

As stated before, estate planning is the most efficient way of avoiding inheritance tax. Other ways include:

1.       Give your family cash gifts

Instead of waiting to disburse your assets to your family after your death, you can distribute this money early, which would mean that they cannot be taxed. When you do this, you can protect your property from the wrath of an inheritance tax.

2.       Trust funds

Trust funds also reduce the weight of an inheritance tax on your assets. Trust funds are significant for those with life insurance since they will help reduce the taxable amount.

Planning your estate

When you begin planning your estate, you should note that there are about four stages that you must cover. These stages include:

1.       Making a list of all your assets and liabilities. This list should also include savings and funds that you have stacked away.

2.       Planning cash gifts to remove the possibility of an inheritance tax on hour assets.

3.       Writing a comprehensive will and selecting executors and guardians. You will also choose the heir(s) to your properties at this stage, as the case may be.

4.       Put down instructions on your last rites.

Consider La Jolla estate planning services to help you plan and put your estate in order. Doing all of these things protects your legacy's integrity when you are going, so get on with it.