Estate planning is the process of accumulating and disposing of wealth before death of individual of group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. In this article, we will discuss the first step of 5 steps of estate planning.
Setting objective is always important for people who want to leave some of their asset to their love one. by making your objective clearly, it will ensure that your executor will distribute your asset to your beneficiaries according to your wish.
Our Sponsors
Long Term Care Insurance Consumer Buying Guide.
Insurance Leads Generation.
Annuities: The Shocking Secrets Revealed.
1.It helps to ensures your properties are distributed according to your wishes
By making you will objective clear to the executor, it will guarantee that your estate will be distributed according to your will, after you die.
2. It minimizes tax implication to your estate.
Since the objection is minimize the tax implication, the best method is to purchase enough insurance to cover the tax needed as resulting of unrealized capitals gain of stocks, properties upon your death.
3. Helping you to accumulate as large an amount of assets as possible
Since tax implication has been taking care of,putting maximum allowed into the investment funds of universal life insurance not only can defer the growth but also can become tax upon you death. Remember, investment and life insurance will pay directly to your estate tax free resulting of larger amount of wealth for your estate.
You may want to invest income return instrument in your RRSP, IRA, because interest income always carry the high tax rate, while leaving non registered investment for capital and dividend gains.
4. It ensures the estate is large enough to provide financial security
By making prudent financial planning and monitor them every year with your finanacial planning regardless fluctuation of stock market and unforseen risk, you can ensure that your estate is big ennough to pervide income secyrity to your b eneficiaries.
5. It ensures your estate pays outstanding taxes and final expenses
With enough life insurance and moving some properties to joint tenancy with the right of survisvor or establishing a living trust before your death, you ensure that estate not only can pay for any outsatading tax and expenses, but also provide enough financial security to some you love.
I hope this information will help. If you need more information or insurance advices, please follow my article series of the above subject at my home page at:
http://medicaladvisorjournals.blogspot.com
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
or if you want to read more of above subject, please visit
http://estateplanningarticles.blogspot.com/
Tuesday, January 6, 2009
Subscribe to:
Posts (Atom)
