Estate Planning: How It Works And The Benefits

protecting a great financial legacy

Amassing a substantial financial empire typically is the direct result of years of hard work and dedicated planning. In turn, protecting wealth in an effective and reliable way can be equally if not more daunting of a challenge. Perhaps more so than the dedication and hard work that goes into accumulating wealth over a period of years in the first place. In fact, one of the biggest oversights when it comes to protecting a great financial legacy may be in postponing the establishment of a well thought out wealth protection strategy. Excessive and undue taxation along with not having a number of important safeguards in place can result in losing a substantial amount of money.

Reduce Or Eliminate Estate Taxes

Anticipating what the future may hold and arranging accordingly with regard to one's estate or legacy (in the event of incapacitation or death) is responsible, logical and necessary. A careful and mindful strategy that will reduce or eliminate estate taxes is a great way to protect heirs and future generations thus providing unparalleled levels of financial security. Having mechanisms in place that allow for the seamless transfer of assets and financial wealth to heirs while bypassing probate is surprisingly simple to accomplish and is very straightforward when working with the right advisor.

Distributing Assets To Designated Beneficiaries

Estate planning can play an important role in accumulating wealth, protecting wealth and eventually distributing wealth and assets through all stages of life. Three key aspects of smart wealth planning include (1) distributing assets to designated beneficiaries as well as (2) making certain that heirs are not burdened with hefty estate taxes and (3) establishing a method for making medical decisions and important financial decisions when a principle becomes incapacitated.

Basic Tasks That Must Be Included

While planning the financial aspects and implementing the decision-making of an estate can sometimes be complex, this type of planning will vary considerably from person to person. That said in most instances there are certain basic tasks that must be included. This includes the following:

·      Putting into place an organized and detailed will

·      Naming an executor for an estate

·      Reducing taxes by setting up trust accounts

·      Ensuring the ability to direct assets by having a durable power of attorney in place

·      Naming beneficiaries with regard to life insurance policies

·      Reducing taxation by lowering the value of an estate

There are benefits to having a professionally crafted estate plan, especially with regard to high-net-worth individuals. This includes the following:

·      The proper passing of assets while minimizing estate taxes

·      Protecting individuals and heirs from potential lawsuits or other types of claims

·      Safeguarding assets from the future children of a surviving spouse

·      Ensuring the heirs receive adequate care when needed

As an added note, wealthy individuals or those who have amassed substantial wealth over the course of a lifetime must remember that life and personal situations do change. This simply means that an estate plan will evolve over time. In some instances a plan will change multiple times over the course of the years. From experiencing a divorce to the birth of a child or the death of a family member, there are a number of major life events that deem it necessary to modify an estate related plan. Even starting or selling a business would likely impact an existing plan. Taking advantage of good planning early on simply makes smart financial sense today.


Disclaimer: Silver Rock Partners is a team of dedicated life insurance advisors who work closely with affluent families to secure the best possible life insurance product. The company also provides innovative tax efficient estate planning for those with a high net worth. Contact today to schedule a free initial consultation with an expert insurance advisor in New York. The firm works with licensed and experienced accountants and lawyers who have years of experience in the industry. Silver Rock does not offer tax advice or legal advice. The information contained here is for educational purposes only.