If you have a significant amount of wealth accumulated, you will want to consider strategies to retain as much wealth as possible. Wealth preservation strategies involve estate planning and careful consideration of taxes.
Tax Planning
Much of your wealth can be lost to taxes. In fact, an estimated 40% of your estate’s worth can be lost to estate taxes. Part of your wealth preservation strategies must include creating tax plans that protect your assets from estate taxes.
Create a succession plan
If your business helped to create your wealth, it is possible for your business to remain successful event after your death. For individuals who wish to create a lasting legacy, you must create a plan for your business. Your succession plan may take place after retirement or upon your death.
Establish Beneficiaries
When you purchase an asset or make an investment, you will be given an opportunity to name a beneficiary. This allows your wealth to go to a spouse or other loved one. You may also be able to avoid probate court by choosing beneficiaries outside of a will.
Estate Planning
Estate planning refers to the plans you have for your assets and debts following your death. To best preserve your wealth, you will want to consider both trusts and wills. During the creation of these documents, you will be able to establish your heirs and name a power of attorney to take care of your finances in case you become incapacitated.
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