How do you want to be remembered? Someone who leaves lots of money to heirs may be remembered as successful or even generous. However, you may desire to create a greater legacy for yourself. How can you use estate planning to pass on more than just cash? Here are three ways.
- Audio and Video Files – The modern generation is all about technology. The best way to reach young minds and hearts is through digital media. Audio and video files that you leave behind allotting your wealth of life experience can make a great impact on your heirs and import vital values to those you leave behind so they don’t have to make the same mistakes that you did.
- Photos and Letters – Of course, there is a place for old-school media in an estate plan as well. Whether it is a family photo album with names and dates to share the family legacy or handwritten letters to family members, this gives you the opportunity to personalize the message you pass along to your beneficiaries.
- Specific Trusts – This is a great way to create a legacy. Leave funds in trust for a charitable organization you support. Create an educational trust for school-age Leave behind incentive trusts that are to be used for specific things so that funds are only dispensed when your nephew finally decides to open that restaurant, or your children take their kids on an annual family vacation.
Creating a Legacy Through Estate Planning
If you want to leave behind more than just money, Petrov Law Firm would be proud to help you develop an estate plan to meet your needs. If you are in the San Diego or Chula Vista, California areas, contact us today at 619-344-0360 to get started.Read More
IRAs have become a popular form of retirement account. They offer tax benefits and are also convenient for a person who runs his or her own business. However, there are a few concerns when it comes to estate planning and IRAs. Here are three things you need to protect your retirement account against so your beneficiaries receive their full inheritance.
- Taxes – Sometimes when an IRA account owner dies, the account is liquidated, and the funds are sent as a check to the beneficiary. The problem with this is that accepting that check may subject your beneficiary to paying a ton of taxes, thereby negating any tax benefits you previously received from putting money into the retirement account.
- Divorce – With an IRA, you select a beneficiary. Thus, a divorce will likely mean changing the beneficiary on the account, a fairly simple process but one that is easy to forget. A 401(k) is a little more complicated because it automatically goes to your next of kin. That means if you pass away before the divorce is finalized, your soon-to-be-ex may end up getting the money.
- Creditors – While retirement funds don’t pass the same way a bank account would, it is also very different from a trust. Thus, creditors may have the opportunity to sneak in and get their cut.
Proper Estate Planning to Protect Your IRA, 401(k), and Other Retirement Accounts
To make sure the right person or persons benefit from your hard-earned money, trust the estate planning pros at Petrov Law Firm in San Diego. We offer the premier California estate planning services in the area. Call 619-344-0360 to get started now.Read More