Best Estate & Asset Planning Tips – Secure the Future Today!

Published on: 21 February 2019 Last Updated on: 09 September 2024

Whether your estate is worth $10,000 or 1 million dollars, you’ll want to have an estate plan in place to make sure your assets go to the right people.

If you die unexpectedly without a will, much of your estate will get eaten up in taxes and lawyer fees to settle the estate and the money may not end up where you intend it to.

Keep reading for five easy estate planning tips to make sure your affairs are in order should anything happen.

5 Estate Planning Tips You Should Take Now

Did you know that more than half of all Americans don’t have a will? As unpleasant as it may be to think about planning for your death, it’s necessary to protect your assets and your family.

Take steps now to make sure your family doesn’t have to stress about dealing with your assets upon your death.

Here are some estate planning tips to make the process easy and painless.

1. Determine What Assets You Have:

Before writing your will, going to an attorney, or planning your estate, you need to know what you have. Take an inventory of all your assets and liabilities to determine your value.

Property, retirement accounts, bank accounts, investments, and life insurance policies.

You’ll need to list all your assets to determine who gets what and how much they get. Some assets, such as a business, will require special consideration in your will or estate plan.

2. Decide Who Gets What and How It’s Distributed:

Now that you know what you have, you’ll need to decide who (or what) your beneficiaries will be.

Spouses, children, other family members, charitable organizations, etc., who get any part of your estate will be designated.

Not only do you need to decide who gets your assets, but you will also need to specify how much or what percentage they get.

If you have life insurance through your employer or another policy or other retirement accounts with designated beneficiaries, make sure you keep those updated.

If you get married, divorced, or have more children, you may want to modify the stated beneficiaries on those policies.

3. Take Steps to Minimize Estate Taxes:

If there might be significant taxes that your beneficiaries will owe, you can take steps to minimize these taxes ahead of time.

You could leave taxable assets to charities or other non-profit organizations, take out life insurance policies to cover any estate taxes, or gift money to your beneficiaries before your death.

4. Choose Who Will Run the Estate:

You’ll need to choose an executor of your will. This could be a family member or an attorney, depending on the complexity of your estate. Choose someone whom you trust.

You also will want to select someone to have the power of attorney if you become incapacitated.

A health care directive is also smart to have, as this will allow your beneficiary to not make major medical decisions on your behalf should you be unable to.

5. Consider Hiring an Estate Planning Expert:

Consider hiring a probate attorney to handle all of this for you. They will walk you through the process, advise you on the best course of action, and then handle any issues with the estate after your passing.

How to Asset Plan for your Business

Sometimes an estate is not all what we earn, and if you are someone with a standing business, keeping it standing once you are long gone is also important.

So, how can you plan for the business well?

Understand the Value of your Business

First, you’ve got to know what your business is worth. And we’re not just talking about how much cash is in your bank account or the equipment you own. It’s everything that makes your business a whole.

What are your total assets?

Do you have intellectual property?

A ton of loyal clients?

These things are all part of the parcel. By knowing this, you’ll be able to make better decisions about where it goes after you.

Decide a Successor

Who will take over when you’re no longer at the helm?

It’s a tough question, but one that needs answering.

A succession plan outlines who will step in to manage your business.

Whether it’s a family member, a trusted employee, or an outside party, having a clear plan ensures a smooth transition.

Start by identifying potential successors and involve them in the business early on. Train them so they understand your vision and can carry it forward.

Set Up a Buy-Sell Agreement

If you have business partners, a buy-sell agreement is essential.

This agreement specifies what happens if one of the partners leaves the business, whether due to retirement, disability, or death.

It ensures that the remaining partners can buy out the departing partner’s share without disrupting the business.

It also sets a fair price for the shares, so there’s no confusion or disputes later.

Consider Life Insurance

Life insurance can be key in business asset planning. Life insurance proceeds can provide the cash needed to buy your interest in a business if you pass away.

Similarly, you can also use these life insurance proceeds to pay off any personal or business debts. Thus, preventing a liquidation of assets that could cost your beneficiaries their livelihood.

Finally, a well-structured life insurance policy will not have an immediate negative impact on your credit rating.

In fact, lenders may be more willing to extend credit to a solvent estate and business.

Reviews are Important

Review and update this plan at least annually as circumstances change over time.

Business planning isn’t a one-time thing. As your business grows and changes, you should update your plan to ensure it always reflects your current direction.

Perhaps you’ve introduced new assets, or your successor has changed. Updating also allows you to identify what’s next on the horizon!

Share Your Plan

Finally, communicate your plan to those who need to know. Your family. Business partners. Key employees.

Only when you put it in writing and communicate it clearly can everyone know what you intend. Finding every opportunity to get rid of misunderstandings is crucial.

The Bottom Line:

Although no one wants to think about their death, making sure your assets are protected and that your beneficiaries are taken care of is a smart move to make. Use these estate planning tips to get yourself started.

For more lifestyle tips and resources, explore some of our other blog posts.

Read Also:

Deepanwita Dey

Deepanwita is a seasoned practitioner of ‘jumping the ship’. She started out her journey with literature and now holds a double graduation degree, one of which is in psychology. As a result, she is now using this skill to help confused job seekers to pick a direction. Given her academic background, her writing is laden with analytical analogies and deep research. As one of Content Rally’s most regular contributors, readers can find a sense of confidence in her writing.

View all posts

We Buy Houses Companies Saving Homeowners From Foreclosure

If you can’t buy something you really need, you can find other ways to purchase it. It doesn’t matter whether it’s a new car or house, you are going to buy it somehow. Thankfully, there are numerous ways to do this today. You can get out a loan. That way you will have the money necessary to buy something. You will pay back the bank little by little. You can pay it annually or monthly. It depends on the contract. To buy a house you want, you can get a mortgage and own the house of your dreams. But you will have to repay the money eventually. If you don’t do that, the bank will take away your home. It means you will be left out on the street. So, you can’t allow that to happen. You have to think about how to stop that from happening. There aren’t many options available really. You have to act fast. You could learn more about foreclosure. What is foreclosure? When you take out a mortgage, you will have to pay back the money. You’ll have to sign a document which says so. So, you are legally bound. You can’t afford to lose your job. No job means, no money. If you’re unable to pay the mortgage, the lender will take away your property. You and your family will get evicted. That’s called foreclosure. So, you have to pay close attention to your payments. The rules on this subject are different in each state. What are your options? If you don’t want to be homeless, you have to think of ways how to stop this process. The first thing you could do is try to persuade your lender to give you more time. If there’s any specific reason why you’re late, you should tell them. They may forgive you. But if you’re often late with your payments, they won’t be that easy to persuade. You could try filing for bankruptcy. If you go bankrupt, your assets will be frozen. Your debt will be frozen too. So, you may be saved for a while. What is your best option? You could try the things mentioned above. But they won’t do the trick. No one can be sure that the lenders will give you more time to gather the money. The bankruptcy procedure may lead you to bigger problems. So, you have to find another way to stop the foreclosure. You may not have heard about real estate investors. If you really want to save your family from all the humiliation, you’ve got to find out more about them. They are known for purchasing homes in foreclosure. How can investors save you from foreclosure? They are the best option you have. You can easily sell your home to them. But you have to do it quickly. You shouldn’t waste any time. The moment you sell your house, the mortgage debt will be gone. You should consider it paid off. So, you are in no danger. You won’t have to worry about being homeless. With the money you will receive, you can find another place to live. You will be able to find another dream home for you and your family. If you can’t find an investor who is willing to save you, you will lose your home. You will be left with nothing. Your family will never forgive you. Investment companies are known for their fast procedures. They can close a deal in a week. So, that is why they can save your house from foreclosure. You can sell your house to them in a few days. It can’t be faster than that. Once the deal is done, you are free. You could read some other things you could try here. You may be wondering about how they are able to do this so quickly. The thing about investors is that they don’t cooperate with banks. They avoid them at all costs. This is so because they just slow down the process. There are a lot of things that wait for their approval. So, the investors have managed to do this thing without them. It’s so much easier. Read Also: What To Do If You Facing Foreclosure? What You Need To Know Before Buying Property With A Tax Lien When Is The HAMP Program Beneficial To You?

Is Property Investment Still a Good Way to Make Money?

With the recent changes in regards to the amount of tax that landlords pay, it has led to many people questioning whether property investment is still profitable. There is not a simple yes or no answer to that question, as all situations are different. For example, buying a single second property with a high mortgage rate is unlikely to be a big earner. And you need to think about whether property values are going to drop, as you could actually end up worse off. However, there are plenty of property investment strategies that do still work and that people are making good money out of. One such strategy is buying houses at auctions for below the market value and then refurbishing them and selling them on at a profit. Now if you have never been to a property auction before then you will need to learn the set up in terms of house bidding. But experienced property investors use auctions as a huge opportunity to make money. Refurbishing : Some investors have a strategy of ‘flipping’ a property whereby they buy the property at a low price and then they do some pretty basic repairs to make the property a more attractive option for people looking to buy a house. They work with tradesmen that they have good working relationships with and therefore can get a lot of the work done at cheaper rates than your average house buyer would be able to. The refurbishment might involve just putting a cheap carpet down and giving the rooms a fresh coat of paint. The work doesn’t have to cost much when investors know what they are doing and how to make a property look more attractive as a potential home. HMOs (House in Multiple Occupation) Another popular strategy for property investors is buying a large property that they can turn into an HMO (house in multiple occupations). Here they will find a larger property on the market and assess whether it is suitable for turning into a shared property, incorporating the necessary construction work to adapt the property to create numerous living spaces. There is quite a lot of work involved in this type of property strategy and it isn’t something you would easily take on as your first property investment project. You need to know the legalities involved and you need to be able to identify an area that is going to be suitable for this kind of venture. Understanding the area and the demand for rental property is a key dependency on this being a successful investment strategy. Before you think about moving into property investment, it is definitely worth doing a whole lot of research before you put any money into it. There are so many people out there that rushed into property investment, thinking that they could easily buy a house cheaper than market value and do it up before quickly selling on. Then the housing market crashed and they ended up being left with a house that they could not sell or had to sell at a loss. So do your research about the market, about the area of the property that you are looking at, learn about all of the legal requirements that play into the investment opportunity. Factor in the financials like interest rates and tax. You also want to be doing some groundwork in regards to finding tradesmen that will be a key part of making money through property refurbishments. When you have done all of that, you can think about whether or not you are in the position to make money through property investment. Read Also : How To Sell Your House Fast?! Five Must-Know Tips To Move Your Property! 7 Reasons To Buy A Condo Over A House

Benefits of Investing in City Centre Property

Property investment is one of the best ways to make money out of your savings, and investing in UK city centre property. Above all, it has been proving an incredibly smart investment strategy. Researchers always said that location is the most important part of a property investment and city centre postcodes in some of the UK's booming regional cities. These are becoming highly sought after by investors from around the world. Why People are Investing in City Centre Property? Over recent years, there has been a noticeable and obvious shift in the number of people choosing to live in the city centre. There are many reasons for this, including increased opportunities, a desire for a cosmopolitan lifestyle and so on. Aside from that one of the significant rises of investing in city Centre properties are in the number of people moving to the city for university and staying there. For buy to let property investors, it is wise to choose a property in a location where there is high tenant demand. After all, this ensures high rental returns and fewer void periods. According to figures from the Office for National Statistics, Liverpool had the fastest growing city centre population in the UK. It happens with a population increase of 181% between 2002 and 2015. Other cities have also registered record population growth; Leeds’ population grew by 150%, Manchester by 149% and Birmingham by 163%. Such huge population growth has led to an incredibly high demand for rental property, with new apartment buildings becoming the most sought-after option. As cities grow up as well as out, investing in city centre property has never been so lucrative. The Benefits of Investing in City Centre Properties Investing in city centre property is also advantageous due to the premium tenants who are looking for these city centre rental properties. Every landlord has an ideal tenant in mind, and if you are looking for highly educated, high earning and stable tenants, then city centre property is perfect for you. More than a third of city centre residents have a degree, with many moving to the city for education. Over half of the people living in big cities work in highly skilled professional occupations like financial and legal services and the digital sector. Many of them are also happy to get the renting for a longer period of time as part of the so-called generation rent. This is all about preparing to pay a premium for better quality accommodation with extra options. These are like high-speed internet, communal gardens and cleaning services. Additional Benefits of Investing in City Centre Properties Major urban regeneration programmes have been witnessed across many of the UK's big cities. This is totally transforming them from tired post-industrial sprawls to thriving modern hubs. This has made city centre living far more appealing, with better access to jobs, leisure activities and lifestyle choices. Projects such as Liverpool One, Manchester’s MediaCityUK and the Albert Dock show just how much of a difference regeneration efforts can make. Furthermore it can increase house prices and rental demand. Property investment firms like RW Invest have seen a huge surge in the number of investors. These are from both at home and abroad who are looking for rental properties in these newly reinvigorated areas. Most UK property has continued to increase in value for a number of years. But when it comes to city centre property, these rises are even more apparent. As well as this, these major projects are often backed by both government and private funding. At these levels which just aren’t seen outside of the city centre. For investors who are looking for a property that has huge potential capital appreciation. In this case, it is obvious why city centre property investment is so lucrative. Read Also: How To Protect Your Property As A First Time Landlord? Benefits Of Working With A Realtor When Selling A Property

Best Estate & Asset Planning Tips – Secure the Future Today!