California is a state many people choose to spend their later years, if not their entire lives. As you reach adulthood and beyond, it’s smart to think about estate planning. If you have a sizeable estate, it’s important to handle it carefully. With that in mind, here’s how to handle high-net-worth estate planning.
Consider a living trust
In the world of estate planning, you’ll often hear about trusts. While they might sound complicated, trusts can be great ways to manage your wealth. Plus, you remain in control of the assets throughout the remainder of your life. When you die or if you become incapacitated, your trust’s successor can carry out your final wishes.
Keeping tax-related expenses low
Most likely, you’ve been working hard most of your life. That doesn’t mean that owners of high-net-worth estates want to incur a bunch of tax-related expenses. So, watch out for annual gift tax and estate tax limits. These limits will let you know how much you can leave behind without surprising any beneficiary with a colossal tax bill.
Be careful who manages your estate
One of the most important roles in anyone’s estate is the executor. This person is typically in charge of handling your financial matters, taking care of your final wishes and managing your assets. So, choose someone you can trust. Also, make sure your executor is capable of handling matters effectively. Sometimes, the person you’re closest to and the individual who should manage your estate are two different people.
In conclusion, it’s important to take your time when managing high-net-worth accounts. Fortunately, estate planning lets you take care of your beneficiaries without wrapping up their time in probate court.