If you have a high net worth, you probably need to make an estate plan as soon as possible. You should have an estate plan to protect yourself, gain peace of mind, and effectively pass on assets to your heirs.
Protect Yourself with an Estate Plan
When you have a high net worth, you may have relatives or friends who want your money. It’s hard to think about the possibility that someone could try to take your assets away from you, but you need to protect yourself. An estate plan can not only help you distribute all of your assets, but also help you gain better control of them.
For example, you can make a plan that gives to charity over time or after your death, with the benefits of gaining tax advantages and reducing your probate estate. Further, you could create a trust that leaves interest and dividends to your relatives but limits their ability to access the principal.
Gain Peace of Mind with an Estate Plan
Without an estate plan, your assets would pass to close relatives through a process called intestate succession. You do not get to choose who inherits, and you do not get to choose how much each person inherits. Your substantial estate will have to go through the probate court process for distribution, which can take months or years and cost a lot of money.
Having an estate plan in place allows you to focus on the rest of your life. You have assurances that your assets will be distributed as you wish. Also, you can appoint a trusted agent to make medical and/or financial decisions for you if you cannot.
Pass on Assets to Your Heirs with an Estate Plan
Finally, you can pass on your high net worth to your chosen heirs with an estate plan. If you have children or a spouse, you can protect them and provide for their future needs through structures such as trusts or college savings plans. You can give money to other relatives or friends too. All of these gifts can take place during your lifetime or after you pass away. In short, an estate plan gives your high net worth purpose in the future after you pass away.
Want to start planning your estate? Local attorney Andrew Szocka, Esq. provides thorough and speedy estate planning help in the Chicagoland area. To schedule a free initial consultation, visit the Law Office of Andrew Szocka, P.C. online or call the office at (815) 455-8430.