• Estate planning involves different types of assets, such as real estate, investments, collectibles, patents, copyrights, royalties, and business interests.
• Gifting assets could help reduce taxes due upon transfer or sale and can transfer wealth from one generation to another.
• Asset protection strategies include establishing trusts, creating an irrevocable trust, and setting up a limited liability company.
• In cases of a will contest, a will contest lawyer can ensure that your assets are protected after you pass away.
Have you been thinking about estate planning and how to handle your assets? If so, you’ve come to the right place. In this blog, you will learn about the different types of assets and how they are handled in estate planning. Learning more about this important topic will help you make informed decisions for your future. Read on to learn more.
Types of Assets
When it comes to estate planning, there are two basic types of assets – tangible and intangible. Tangible assets include physical items such as the following:
Real estate
Real estate is property such as land, buildings, and the structures on it. Real estate is an asset that can be bought, sold, or transferred for a variety of purposes, such as providing financial security to you and your family.
Investments
Investments in stocks, bonds, mutual funds, and other types of investments are also considered tangible assets in estate planning. These assets can be used to create an income stream for yourself or your heirs and can help you build wealth over time.
Collectibles
Collectibles such as coins, antiques, and artwork are also considered tangible assets. These items can increase in value over time and can be used to provide financial security for your family.
In addition to tangible assets, there are also intangible assets that need to be accounted for in estate planning. Intangible assets can take many forms but typically refer to things like the following:
Patents
Patents are a form of intellectual property that can be used to protect inventions. Patents can provide long-term financial security for your family and should be considered in estate planning.
Copyrights
Copyrights are another form of intellectual property that can be used to protect creative works such as books, music, and movies. Copyrights can also provide financial protection for your family and should be taken into account in estate planning.
Royalties
Royalties are payments made to an author or artist for the rights to use their work. Royalties can provide a steady income over time and should be taken into consideration in estate planning.
Business interests
Business interests such as partnerships, limited liability companies (LLCs), and corporations can also be handled in estate planning. These assets can generate income for your family over time and should be taken into consideration when planning for the future.
These are the types of assets you should consider when planning your estate. Knowing more about these assets and how they can be used to provide financial security for your family is an important part of the process.
Estate Planning Basics
When beginning estate planning, you need to consider both the type of asset and the tax implications associated with it. For instance, tangible assets are generally subject to taxation upon transfer or sale, while intangible assets may not be taxed until they are converted into cash or other liquid forms.
Gifting Assets
In some cases, gifting certain types of assets is another option to consider when planning an estate. Gifting could reduce overall taxes due upon transfer or sale by eliminating capital gains taxes that would otherwise be applicable if the asset was sold outright.
It can also provide additional benefits, such as avoiding probate fees associated with inherited property and transferring wealth from one generation to another without incurring additional taxes. However, there are restrictions on gifting certain assets, so discussing this option with a qualified attorney before proceeding with any transactions involving such items is important.
Asset Protection Strategies
When estate planning, it’s also essential to consider asset protection strategies. Properly protecting your assets can help ensure that your wishes are carried out and minimize the possibility of them being subject to claims or liabilities after you pass away.
Some common asset protection strategies include establishing trusts, creating an irrevocable trust, setting up a limited liability company, or using asset protection devices such as life insurance and annuities.
Additionally, in cases of a will contest, a will contest lawyer may be necessary to protect the assets of an estate. A will contest lawyer is experienced in researching and analyzing wills to determine whether they are valid or not. This can help protect your assets from any fraudulent claims against them after you’re gone.
Estate planning involves a lot of considerations, from understanding the different types of assets to developing asset protection strategies. Estate planning may seem intimidating initially, but with proper guidance, you’ll have peace of mind knowing that all aspects have been taken care of for future security.
