A Step By Step Guide For Succession Planning Of Your Estate

With almost 16.9% of the country’s population approaching the age of 65 and above, succession planning is gaining importance for a large section of the populace. Efficient succession planning and execution is crucial to ensure your estate and fortune remains secure even after your demise and your belongings are distributed in accordance with your wishes.

Planning for your estate systematically with an experienced lawyer also helps you save on taxes and preserves your hereditary assets against personal liability. Here’s a closer look at a few estate planning strategies to make the preservation of your assets easier:

Consult a Lawyer

Succession planning for your estate is an intricate process that requires a detailed understanding of your assets, your business as well as your personal requirements. Estate management goes beyond the selection and instruction of a successor for your assets.

Consulting a skilled estate lawyer not only helps you select the right successor but also assists you in creating an enduring power of attorney, preparing a living trust and devising an effective plan for managing your estate taxes. Refer to a lawyer to understand these estate planning strategies better and begin succession arrangements for your earnings.

Prepare a Will

This is a crucial aspect of succession planning that you should not overlook. Demise of an estate owner intestate leads to the distribution of assets according to the stipulations of the provincial law of Alberta. This may not be in accordance with the holder’s wishes and can have an adverse effect on owner’s family businesses.

Planning for an inclusive and accurate will along with your estate lawyer ensures your assets are distributed according to your requests. Your lawyer can also help you minimise and diversify taxes on your estate by establishing a testamentary trust.

Opt for an Estate Freeze

It is essential for estate owners to dispose their property at the time of their death at fair market value. This increases the tax liability on your estate considerably, especially during the process of transference to the successor. An effective tool to minimise these tax obligations is freezing your assets at the time of demise.

With an estate freeze the valuation of your assets is frozen at the date of transfer, allowing you to reduce the tax burden on your property greatly. You can implement an estate freeze by an internal re-organisation of your assets. Consult an estate lawyer to understand and implement these taxation benefits better.

Plan Charitable Donations

Making charitable donations during your operative years can help you earn income tax credits and also reduce administration charges on your estate. Giving money to charity in any form including distributing life insurance or establishing an endowment trust can help you minimise the income tax on your estate and make the process of transference easier for your beneficiary.

Transfer the Assets

Transferring capital to your family members before your demise is an effective way to manage your assets. Giving away a part of your inheritance to your family members or your successor beforehand also reduces taxation burden on your estate. However, it is crucial to stipulate clearly whether the money awarded is a part of the inheritance or not.

Estate planning and administration is a complex process that needs to be executed with care and precision. Contacting an experienced law firm can help you plan for your estate and its succession better.