If you are thinking about how to protect your legacy, you have probably heard about and perhaps learned a little about estate planning in Utah. Many people are curious about what types of assets they should be protecting when they begin building an estate plan, and it’s important to get the right legal advice to help you protect your most valuable items and your overall net worth.
Customizing an Estate Plan
There is no clear-cut definition of exactly what assets you must protect with your estate plan, and it’s important that you work with an attorney that recognizes that each plan is unique and should be customized according to your individual financial situation, your assets, and your plan for the future. These plans can also help you define exactly how your heirs will receive their inheritance to avoid problems later down the road, and can take into account things like death, remarriage, divorce, lawsuits, and bankruptcy. Finally, your estate plan should be designed to avoid the hassle and unknowns associated with probate, prevent losses from gift or estate taxes, and carry out the transfer of your assets according to your wishes.
Four Assets to Protect
While every estate plan should be individualized, there are a few common assets and some traditional wealth accumulation that many people want to protect.
- Retirement Accounts – If you have been saving money in an Individual Retirement Account (IRA), a 401(k), profit sharing, pension funds, survivor benefits, or any similar retirement account, you want to make sure that your heirs will be able to access this money after you are gone. If you have a significant amount of wealth that you have accumulated through similar investment accounts, it’s important to have an attorney that can help you understand the laws associated with transferring this wealth.
- Your Home and Property – Another part of every estate is the family home, as well as any additional property, such as vacation homes, rental properties, and more. This is often one of the largest single assets in an estate, and should be protected and passed on to your heirs in the way that you would prefer.
- Business Ownership or Income – When you own a business, it’s critical that you create an estate plan that takes into account these assets. Your family might want to continue to run the business for income, or they may prefer to sell it when you are gone, but either way you want to make sure that your surviving beneficiaries divide up the ownership or profits from that business (or sale of the business) in the way that you envisioned.
- Heirlooms – Finally, you should consider any valuable family heirlooms that you might want to pass along to your beneficiary (or beneficiaries) after you pass away. In some cases these things might have specific monetary value, while in other situations they will carry more emotional value, but either way you want to ensure that they are in the right hands when your estate is divided.
While this is not necessarily a comprehensive list of all the assets you might want to protect, these four are essential items to address during estate planning. Talk to an attorney today to find out more and get started customizing your own estate plan.