Estate Planning Advice for Investors

wills living trusts probate

Estate Planning Advice for Investors

On our investment website, we often write about how to grow your portfolio. Today we’re gonna talk about a different topic entirely how to protect and preserve your assets after your death.


Surely you’ve heard of asset diversification and other legal instruments to protect against lawsuits, however, the best way to protect your wealth is through proper estate planning. This will make it possible for you to pass on your assets to your chosen heirs at the time of your passing.


What is estate planning?


Simply put estate planning is the preparation of how to transfer your assets upon your death which includes your beneficiaries and specific instructions. Most professional estate plans have been designed to minimize tax payments for both your estate and your heirs. Additional provisions for custody and care of your dependent children or adults are also included.


Another benefit of estate planning is that it can help in the case where you become unable to manage your affairs due to illness. You will appoint an estate trustee to manage your assets with your power of attorney and guidance of what measures you want to be taken medically to extend your life. These types of planning documents help your family to grant your wishes and guide them during the difficult time of your illness and death.


Asset protection


Unfortunately, as your portfolio grows so does your risk for lawsuits and claims for actual or fancied damages. The very best way to protect yourself and your assets from these types of legal proceedings is to remove the majority of your assets and put them into vehicles that are legally protected so the money is beyond reach. This often greatly reduces the likelihood of these types of nuisance lawsuits.


Will preparation


All estate planning begins by creating a legally enforceable will. This document details your desires for the distribution of your financial assets upon your passing. You decide the allocation distribution and the specific parties in detail.


This is the opportunity to decide who you do not want to share in your money after your death. If you do not specifically remove certain individuals, such as children and spouses, most state probate laws will automatically make them your heirs.


It’s simple to get a will prepared by a competent legal service such as LegalZoom. Promo codes for saving 10% are here.


Trust creation

Once you have your will in place, the next level of protection would be a trust that gives you living benefits from your assets while you are still living.

Every state has variations but here are the two basic types of trusts


Living trust

You transfer your assets into this living trust which protects them legally and could be either revocable or revocable as you decide. This type of trust helps you to control your assets while alive, upon your death the trust documents would be followed. Without being subject to probate

For the maximum legal protection ,you will want your trust to be in a revocable because certain states consider revocable trusts as income on your personal tax return and could be subject to seizure.



This type of trust is created upon your death and is funded by your financial assets or your life insurance. Greater legal protection than a will is this type of trust because the money is transferred upon your death in line with the trust documents

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