There are a number of legal vehicles that you can use to better position your estate for distribution upon your passing. One effective way to save money on taxes and increase an estate's income is to create a charitable trust. This type of trust isn't tax exempt and is meant to benefit one or more charities. However, the assets in a charitable trust can be subjected to a charitable contribution deduction, which can significantly decrease the size of a taxable estate.
We spend a lot of time on this blog discussing what many consider to be the biggest parts of estate planning. This includes how to utilize wills, trusts and other legal vehicles to protect estate assets and ensure that they are distributed according to an individual's wishes upon his or her death. While these matters are extremely important to address and address correctly, they are not the only matters to consider when creating an estate plan.
Californians who have minimal assets may find the estate planning process to be pretty straightforward and simple. Those who have significant assets, though, may find the matter much more complicated. This can be especially true for those who own a business. Deciding what to do with a small business can be difficult because an individual must consider not only financial ramifications of passing it down to one's heirs, but he or she also has to consider the emotional effect of his or her decision.
Throughout life, individuals accumulate wealth in hopes of being able to meet their own needs and desires. If they are lucky, they are able to accomplish this feat and help out others in the process. However, once you pass away, your assets mean nothing to you. However, those who choose to engage in estate planning can better ensure that those who mean the most to them will receive assets that may be helpful to whatever purpose they are trying to attain.