The estate planning process for those with a high net worth

On Behalf of | May 3, 2021 | Probate & Estate Planning |

Pennsylvania citizens who have a high net worth have additional steps they’ll need to think about for the estate planning process. The most important step is starting the process so that they can ensure that their assets go to the beneficiaries that they want. Without proper estate planning documents, your assets will be awarded based on what your state’s laws require, and you might miss out on tax-saving opportunities.

Start with choosing the right planner

Estate planning all starts with having an experienced estate planning attorney by your side, who may work closely with your accountant and financial planner. The attorney is a professional who will prepare the required documents on your behalf to fulfill your wishes. He or she should be listening to your concerns and addressing them in a way that is both cost-effective and fits all of your needs.

Have an objective to minimize estate taxes

One of the biggest problems experienced by heirs of high net work grantors are expensive estate and inheritance taxes. You can do your beneficiaries a favor by focusing your estate planning efforts on ensuring that they pay as little money in estate and other taxes as possible. Some other common taxes that you’ll want to minimize are generation-skipping taxes, gift taxes, income taxes and wealth transfer taxes. You’ll also want to talk with your trustee about any state taxes that you’ll need to work to minimize during your estate planning process.

Incapacitation planning

The next thing that you’ll want to do is ensure that you plan for the event that you become incapacitated. You’ll need to assign someone as your Agent under a Power of Attorney. That person can be responsible for things like medical treatment decisions, changing beneficiary designations, and financial spending.

Estate planning is a necessary process for every American adult. If you have a high net worth, it’s even more important to plan out what will happen to your assets upon your death. When you start to undergo the process, you should ensure that you have a knowledgeable lawyer by your side so that your best interests are looked after.

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