Estate Planning Strategies For High Net Worth Individuals
All adults should have an estate plan that can make things easier on their loved ones after they pass away. However, if you have acquired a great deal of wealth, assets, and other resources, working with an estate planning attorney is even more important. The larger your estate is, the more complications and issues that could potentially arise. Below are some common strategies used that can help you manage your estate throughout your lifetime, and make it easier to administer after you pass away.
Draft Revocable and Irrevocable Trusts
Transferring property into a trust can significantly reduce the stress of administering your estate after you pass away. A revocable trust allows you to manage the assets in the trust during your lifetime. You can sell the property, remove property from the trust, and add to it just as you can with other types of property. Upon your death, a revocable trust becomes irrevocable and a separate legal entity from your estate. Due to this, the property in the trust does not have to go through probate and instead, can be distributed to the beneficiaries sooner.
You can also use a trust to protect property you want to pass on to individuals with disabilities who receive government benefits, minor children, or individuals you feel may use the property within the trust irresponsibly.
Appoint a Professional Trustee
As a high net worth individual, you likely rely on professionals to advise on financial strategies and investment decisions. You should continue to rely on professionals for estate planning and trust administration. Under state law in Florida, you can appoint relatives or friends to administer your estate. However, appointing a professional, such as an attorney or financial advisor, can help avoid issues in the future. Appointing an individual who does not have the necessary experience may result in trust mismanagement and breaches of fiduciary duty. Choosing a professional also removes the family dynamics, such as sibling rivalry, from the situation.
Designate a Trust as Beneficiary
It is not uncommon for small estates to rely on transfer-on-death accounts that have beneficiary designations to ensure property is transferred directly to beneficiaries. However, after you establish a trust, you can name it as a beneficiary for your retirement assets, investment accounts, and bank accounts. This can prevent estate administration becoming divided, with some property going through probate while other assets are exempt. An estate planning attorney can help you complete the proper paperwork to ensure your trust is fully funded upon your death.
Our Estate Planning Attorney in Daytona Beach Helps High Net Worth Individuals
At Bundza & Rodriguez, our Daytona Beach estate planning attorney knows how to overcome the complex issues high net worth individuals face. We can advise on the other estate planning strategies that can minimize tax and probate consequences and ensure your assets are properly managed now, and in the future. Call us today at 386-252-5170 or contact us online to schedule an appointment with our knowledgeable attorney and to get the legal help you need.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
