MacMillan Estate Planning Blog

Ask an Expert - Is Your Family's Wealth Properly Protected?

Written by Sheri MacMillan | Nov 24, 2016 7:48:12 PM

Question

My husband and I are both retired, our children are grown and we are blessed to have many grandchildren. Now, in our senior years, we would like to prepare our estate so our loved ones inherit our assets in the smoothest, most efficient way possible. How can we accomplish this?

Answer

We all need the comfort of knowing that our loved ones are properly protected for the future. In order to ensure that your wealth is transferred in a tax efficient and harmonious manner, it’s vital to proactively plan your estate.

Estate planning permits you to bestow a legacy that reflects your wishes, giving purpose to what you have achieved in your lifetime. The most valuable gift you can provide to your family is security and peace of mind.

Placing assets intended for our beneficiaries into trust is a good way to help prevent unnecessary losses, and can also offer substantial tax benefits.

Trusts can safeguard a loved one’s inheritance against the risk of a divorce, a lawsuit, or a myriad of other risks.

For centuries, trusts have been used as an efficient property distribution technique, due to the special tax benefits and protections they grant. A trust is best described as a private legal relationship that holds assets on behalf of a beneficiary.

Unlike basic will planning, assets held within a trust may avoid the court process of probate. Moreover, trusts may create income splitting opportunities and facilitate other estate planning objectives.

Trusts are exceptionally versatile estate planning tools that can be tailored to every unique family situation. Assets placed in a trust are shielded from non-bloodline family members, should a loved one choose to divorce or remarry. In addition, special trusts can be created to protect a family member with mental incapacity, an addiction problem, lack of business experience or money management issues.

With careful planning and a little ingenuity, it is easy to protect your wealth from both taxes and potential legal or family disputes. Ultimately, a trust will allow you and your husband to enjoy the peace of mind that comes with knowing you have proactively planned your estate.

Find out more about protecting your estate ensuring family harmony and peace of mindby attending one of our seminars!