What is it ?

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Just as the name suggests, it is the transfer of all your assets to the people and or institutions at your death. It is a part and parcel of Estate Planning which involves transfer of assets through the most tax efficient planning tools legally available. For most of us it is simply Legacy Planning.

 

How do I give what I own to who I want, in the amount I choose at the time I feel is appropriate  ? (Right people, Right proportion, Right time).

 

It is not as complicated as we imagine, but it is not that simple either. You need the right advisor and you do need a PLAN. Now, planning is a process and a process always has steps in it.

 

Let me guide you through the steps.

1. What are my objectives?

2. Talk to the family members about protecting and transferring assets at        your or your spouse’s death.

3. Explain the process and get their involvement

4. Buy In of the family members for the key people who will fulfill the           appropriate roles in this process.

5. Create a plan that would have considerations for the following:

     a) Educational gifts for the family members

     b) Charitable considerations

     c) Major health changes affecting you and your spouse

     d) If there is a special needs child

 

Once a plan is agreed on, two important things

1. ACT NOW – Implementation is the key

2. Review the plan periodically, may be every 3-5 years or at some life event (any major changes in life).

 

Earlier I mentioned about planning tools, most common of them are:

1. A Will - It is often mentioned “if you will, it will”. In short it is a legal document of your wishes for what should happen to your assets and everything else around you when you die.

2. A Trust – A little bit more complicated then a will, but basically a control mechanism tool.

3. A Health Care Proxy & a Durable Power of Attorney – Basically both of them appoint an agent to act on your behalf regarding health care decisions and financial matters, when you cannot act on your own.

 

These tools, with the right advisor and appropriate planning will help you make your Wealth Transfer as tax efficient as possible.