People contemplating their wealth management needs tend to focus on medium and long-term goals within their lifetimes. However, it's wise to think about how these plans will also affect your legacy. Trust and estate planning have their roles when it comes to wealth management. Take a look at how you should address this aspect of managing your wealth.
Transferring Assets
Fundamentally, the goal is to transfer assets to beneficiaries with the least trouble possible. Trust services tend to be particularly useful to this end. A trust can put assets in the hands of beneficiaries quickly. If you're worried about your spouse having access to your money after you pass, for example, this will minimize the pain of waiting for the rest of the estate to clear.
Similarly, some people have concerns about how estates go into the public record. A properly formed trust, though, will avoid prying eyes. If you're worried about people hassling your descendants for money, this can be helpful.
Stability and Control
Trust and wealth management needs often overlap because people want their beneficiaries to have stability. If you have a minor dependant child, for example, a trust can ensure the wealth will be there for them. You can either empower the trust to transfer the assets to their full control when they hit the age of majority or keep a trustee in place to guide their finances.
If you're interested in trust services for philanthropy, this sort of structure is important. A trust can continue to manage the assets to ensure long-term growth. This will provide a stable source of money to fund ongoing philanthropy in perpetuity.
A trustee can also steer the wealth as conditions change. If a beneficiary organization goes under, for example, the trustee can direct the funds to a new one with a similar mission to fulfill your will's stated goals.
Taxes
Anyone trying to handle wealth management and legacy concerns will want to think long and hard about taxation. Particularly, you don't want to trigger any tax events if they're avoidable. Likewise, you don't want to create any more tax events for beneficiaries than what circumstances require.
Notably, your estate will need to settle your taxes before proceeds and assets move to beneficiaries. However, you should include money in your estate plan to address these needs. The same goes for covering any outstanding debts. Make sure to update your trust and estate planning documents annually to account for changes in taxes and debts.
Contact trust services near you to learn more.
