One of the main reasons why people choose to invest in an estate plan is to ensure that as many of their hard-earned assets are passed on to loved ones and dependents, rather than the government. However, making the most of this as an heir requires a far more complex strategy than many people may think, and this is where an experienced estate planning attorney in New Jersey may become invaluable.
Step one: Inheriting the right way
Before thinking about how to make the most of an inheritance, it has to be protected before it even reaches heirs. In order for an inheritance to pass to the heirs successfully and with minimal taxation, an estate plan must be developed and customized to deliver optimal results. This can involve something as relatively simple as a properly drafted Last Will and Testament, or a series of more complex strategies that are put in place years or even decades previously, including different trusts and tax-free gifting strategies. Finding the right combination of legal devices is a long-term strategic move based on the exact needs of each individual, their unique situation, and dependents – there’s no one-size-fits-all solution.
Step Two: Think beyond your time
Certain steps can be taken to ensure that an inheritance is spent or protected in particular ways, and these can be included in your estate plan. For example, funds can be allocated for the use of educational purposes to the benefit of your children, and you can legally prevent this money from being spent in any other way. Another example is using a tax-deferred retirement savings plan (401k, 403b, or SEP), which ensures that this asset cannot be spent on taxes – instead putting in place a tax-saving plan that allows your IRA to continue to grow after your passing.
Step Three: Protect your assets for your children – not from them
One concern for parents is that their children may lose their rightful inheritance in the event of a divorce. It’s an uncomfortable issue to discuss, but the reality is there – and many parents rest easier knowing that their child will have the benefit of their inheritance and the security that comes with it, even if the worst happens. There are various estate planning tools available to ensure this peace of mind, including a Protective Property Trust Will, which allows your child to use the money (even to buy a property, for example) through their marriage without putting it at the potential will of a divorce court.
Effective estate planning advice from your NJ attorney
Experience estate planning attorney Frank R. Campisano can assist you with navigating issues around estate planning, as well as drawing up other legal documents including Power of Attorney, medical directives and more. For more compassionate legal guidance, please contact us today or visit our website at http://www.scclegal.com/