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Estate planning is for more than just taxes

by | Sep 4, 2019 | Estate Planning

When a couple is building an estate plan, they may consider a trust due to the tax benefits. Married couples who are ready to plan for their estate should do so with more than simply taxes in mind.

Many families with over $1 million worth of assets to invest do not have an estate plan. In 2015, the fraction of high-income families without an estate plan was one-third. Families in New Hampshire deserve to protect their assets. It is crucial to build a custom estate plan that meets your unique needs.

Retain a level of privacy over assets

When a person decides to distribute his or her assets to beneficiaries using only a will, the estate goes through probate. The probate court oversees the administration of the assets. The court records are available to the public, so anyone may access asset information, names of beneficiaries and the transactions. Most couples prefer privacy so that there are no assumptions of favoring one beneficiary over the other. Proper estate planning utilizing trusts and other options may help you maintain privacy over your assets.

Dictate how the assets distribute among beneficiaries

Without an estate plan, New Hampshire intestate law dictates how to distribute the assets. For most couples, this does not offer enough control. The law may or may not accomplish how the couple wants to split assets. The general rule is that when a person dies, his or her assets go to a surviving spouse, and the surviving children receive a portion of the assets.

Protect against a child’s creditors

When a child has poor spending habits, his or her own business or a high-conflict marriage, parents may seek to protect said assets. When a beneficiary inherits via a will, the money and assets are available to creditors, and may also be subject to a business liability issue or a vindictive spouse. If his or her inheritance is in a trust, then the trust’s guidelines can ensure that the creditors cannot collect from it.