Five Estate Planning Strategies To Preserve Your Wealth

You have spent a great portion of your life accumulating wealth and assets. It is critical to have an estate plan in place that protects all of your property, so it is not subject to unnecessary taxes, creditor claims, and other factors that can chip away at your loved ones’ inheritances. Below, our St. Petersburg wealth preservation lawyer outlines some of the best strategies that can protect you and your family.

Creating a Will 

The first step in wealth preservation is to create a will. A will is a legal document that details how your property should be distributed after you pass away. A well-drafted will is the only way to ensure that your wishes are respected. A will can also provide clarity, preventing possible disputes among beneficiaries and heirs. A will ensures that your property is distributed according to your intentions and personal relationships.

Purchase Life Insurance 

Contrary to what many people think, life insurance is for far more than just an unexpected death. A life insurance policy can provide long-term protection for your family’s wealth from paying estate taxes to covering funeral expenses to funding business succession plans to settling debts. There are many different types of life insurance policies for wealth preservation, including:

• Term life insurance
• Whole life insurance
• Universal life insurance

Create a Trust 

When trying to preserve your wealth, trusts are an essential part of estate planning. To establish a trust, you must draft a legal document and then fund the trust by placing property in it, which requires transferring title of the asset. There are many different types of trusts that can help you preserve your wealth, including:

• Revocable trusts
• Irrevocable trusts
• Special needs trusts
• Charitable trusts
• Life insurance trusts

Investment Diversification 

Diversifying your investments is a critical part of wealth preservation. Diversification refers to making investments across many different vehicles to minimize your exposure to any single risk or investment. Investment diversification does not necessarily increase the performance of any single investment but instead, it limits the amount of volatility to your portfolio. When you invest in different areas that will all respond differently to the same event, you reduce the likelihood of your investments all performing poorly at the same time. A few of the most common types of investments to consider are as follows:

• Bonds
• Equities
• Real estate
• Precious metals
• Cash equivalents

Donating and Gifting 

By donating and gifting your wealth and property during your lifetime, you can have a positive impact on others, leave a lasting legacy, and reduce potential estate taxes. There are certain laws pertaining to gifting property, however, so it is important to work with an attorney before using this strategy.

Our Wealth Preservation Lawyer in St. Petersburg Can Help You Choose the Right Strategy 

There are many options when trying to protect the wealth you have worked for your entire life. At Legacy Protection Lawyers, LLP, our St. Petersburg wealth preservation lawyer can advise on the strategy that is right for you to ensure you and your family are fully protected. Call us today at 727-471-5868 or contact us online to request a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html