People who have executive positions usually have nice benefits packages that provide them with a healthy income. For many executives, being able to pass down wealth to their heirs is important. A comprehensive estate plan is one of the most effective ways to make this happen.
Your estate plan will likely have many components, but they all work together toward your goals. Here are two that shouldn’t be overlooked:
Goal: Pass down as much wealth as possible
One of the biggest concerns, when you have a sizeable estate, is the value of it and how that will impact the taxes. Executives with considerable assets can use gifts to pay down the value of the estate.
There are limits to how much each person can give to a single person, and there are limits that change annually for the maximum gift amount that a person can give to an individual before a gift tax applies. There’s also a threshold for the taxable estate value. It’s wise to make sure you have solid financial advice as you proceed with your plans.
Goal: Provide for your care if you’re ever incapacitated
You need to ensure your bills will be paid if you can’t make decisions for yourself. You also need to be sure that someone can make decisions about your medical care if you’re unable to speak for yourself. These are done using powers of attorney designations for each area, and they’re a critical component of any high-value estate plan.
Anyone who’s accumulated significant wealth should ensure they have an estate plan that provides each asset with a recipient. Being detailed can help you to have peace of mind about your family’s future.