The process of planning for the future is specific to the individual person, the size of his or her estate and other details. Regardless of the wealth of the individual, estate planning is still an important process for Colorado adults of all ages and income levels. In some cases, creating an effective estate plan is a straightforward process, especially for smaller, simpler estates. For those with larger estates, estate planning is a more complex process, and it may require more to create a suitable strategy.
If you are a high-net-worth individual, there are important estate planning considerations that could improve the success of your plans. You will find it important to account for tax implications and more as you make plans for what will happen to your estate. Careful planning can provide you with peace of mind that comes from knowing your interests are secure and that you have the final say over what will happen.
What steps should you take?
There are different steps you can take that will allow you to accomplish your goal of planning well for the future. With a larger estate and more assets to plan for, it will be beneficial to know how you can plan for contingencies in the future. Steps for creating a beneficial estate plan for a large, valuable estate include the following:
- Take steps that will allow you to minimize estate taxes. When making plans for what to do with your property, you will benefit from considering both the state and federal taxes that could impact your beneficiaries.
- You will benefit from planning for your potential incapacitation. You can name someone to make medical decisions for you, as well as manage your finances during this time.
- It may be practical to create a trust as a way for you to control assets. Property held in a trust does not go through probate, and you can designate trust assets for a specific use. You can also appoint someone to oversee the trust.
You may find it helpful to seek professional guidance as you create an estate plan for a large estate. High-income individuals will benefit from first having an evaluation of their estate in order to understand the specific estate planning tools that will be most useful for their individual situation. Creating a practical plan is an important step for everyone, particularly those who have higher incomes, larger estates, and complex or valuable assets.