As you approach your retirement years, you may need to use estate planning to help you preserve your personal property and wealth. Whether you plan to leave behind cash, property or some other assets to your loved ones, a comprehensive estate plan can help shield their inheritance from creditors, the IRS and other liabilities. Careful consideration of your current and future goals and your heirs’ lifestyle is necessary to protect your legacy.
Your estate plan should provide peace of mind for you and your loved ones. Here are some strategies you can use to protect your family’s inheritance.
Plan for your health care and retirement expenses
Consider your current and future health and retirement needs and plan for contingencies. Before you set aside assets and financial resources for your heirs, make sure there are enough medical, health and financial resources in place for you to live comfortably should you fall ill, become incapacitated or die sooner than expected.
Create trusts to bypass creditors and other parties
Outstanding debts, ex-spouses, stepchildren and other parties and issues may arise that might diminish the legacy you leave behind. Trusts enable you to control the transfer of certain assets and maintain your estate’s privacy from the public.
Choose the right executor
The person or entity you designate as your executor is responsible for managing your estate and final affairs. The executor is also in charge of settling your estate debts and transferring assets to your heirs. Choose a responsible and trustworthy person or organization to serve as your executor to preserve your final wishes and prevent asset misappropriation.