Estate planning is especially challenging for wealthy people in New York and around the country. You could have dozens or even hundreds of high-value properties that you want to pass along to your loved ones. If you don’t plan your estate carefully, federal and state estate taxes might take a sizable chunk of it.
What are some estate planning considerations for wealthy people?
When most people start estate planning, they want to reduce taxes as much as possible. Your estate planning attorney might suggest forming a limited liability company or splitting ownership with another party. Your assets won’t change, but they could appear less valuable for tax purposes.
Many people also want to leave charitable gifts behind after their deaths. You could set up a charitable trust that allows you to enjoy the assets until your death, then donates the rest to charity. If you’d prefer to donate your funds directly, you can set up a fund for a public or private charity. You won’t be able to use the assets for your own benefit, but you can decide which charity gets the funds.
Before you start writing your will, you might want to gather a team of professionals to make sure that you include everything. This could include your attorney, accountant, tax advisor and other people in your circle. You’ll need to take stock of all your assets, savings accounts, investments and properties to ensure that they go to the right people. For wealthy people, this is typically a time-consuming process that they can’t accomplish alone.
Are you thinking about planning your estate?
Whether you have only one asset or several dozen, it’s never too early to start planning your estate. If you have a lot of high-value assets, you might need a professional who can help you keep track of them all.