After working hard for your money, you want to make sure that it stays within your family for your loved ones after you pass. When you create an estate plan, you have to make sure your money goes to the people that you want it to go to.
According to the U.S. News, people who die with assets over $11.7 million have to pay an estate tax. While those with less than $11.7 may not have to worry about the estate tax, they still have to focus on directing the money to the right place.
Gift when alive
One option that some people overlook is the gifting option. Gifting can allow you to pass your assets to loved ones while living without having to worry about various taxes. An additional benefit to gifting your loved ones is the ability to see the look on their face when you do. You do not have to wait until you die to pass on some of your assets that you want your loved ones to have. The IRS allows you to give $15,000 in gifts per person per year. If you give away assets that appreciate in value, like homes or stocks, because the taxable amount adjusts after you die.
Set up a trust
If you worry about how your heirs will treat your money, you may want to set up a trust. Irrevocable trusts offer tax benefits, such as avoiding the estate tax. A trustee controls the money and assets within the trust and a person can only use those assets under certain circumstances.
When it comes to your assets, you deserve to leave behind the money you want to your family.
