If you’re thinking about creating an estate plan, then you’re probably interested in leaving your assets to your loved ones in a way that abides by your wishes. For some, a simple will may be sufficient to meet this goal, but for others who have significant assets, complex ideas for distribution and a desire to ensure long-term inheritance schemes, then a more detailed estate plan that uses multiple estate planning vehicles may be necessary. But if you’re unfamiliar with the estate planning process, then it might be hard to identify your options and figure out which ones are right for you.
That’s why in this post we want to look at some estate planning options that’ll help you ensure that your assets have longevity, thereby providing your loved ones with the long-term financial support that you envision for them. By doing so, you’ll hopefully be in a better position to create the kind of future that you want for your estate, those individuals you care about most and the causes that are important to you.
There are several estate planning vehicles you can use when drafting your estate plan. Here are some of the most commonly utilized options that you may want to consider:
- A generation-skipping trust: This type of trust gives assets directly to your grandchildren, which ensures that they’ll have financial resources once they reach the age of majority. This type of trust can also carry some tax incentives, too, which may allow your assets to go even further in supporting your family.
- A special needs trust: If you have a loved one with special needs, then this type of trust can ensure that they have the long-term support that they need without affecting their ability to qualify for important government programs like Medicaid.
- A spendthrift trust: This type of trust releases assets to named beneficiaries in an incremental fashion so that trust funds aren’t spent away too quickly. This gives your assets and your estate longevity, ensuring that they aren’t susceptible to waste.
- A discretionary trust: Here, the trustee managing the trust has the discretion to release trust assets when they see fit. If you name someone you can rely upon to act as trustee, then you can rest easy knowing that they’ll only release assets when it’s appropriate to do so, which will help those assets last longer.
- An incentive trust: This type of trust allows for the release of trust assets only once an identified condition is met. For example, you may require that a named beneficiary complete a financial literacy course or hold a full-time job for a specified period of time. These skills that you require your loved one to develop can enhance the longevity of the inheritance that you give to them.
- A legacy trust: This type of trust is intended to support multiple generations and can last a significant period of time if created appropriately.
- Proper beneficiary designation: Picking the right beneficiaries can be key to the longevity of your estate. If you want your assets to last for a significant period of time, then you should name beneficiaries you can trust to manage their inheritance wisely.
Create the estate plan that best positions you to bring your vision into reality
There are so many estate planning options that it’s easy to get overwhelmed by the process. But you can take control of your estate plan creation, so it’s up to you to educate yourself on your options and what you can do to protect your interests and your vision of the future. If that’s something that you’d like assistance with, then consider seeking out any guidance that you may need along the way.