Sure, the focus of your estate planning may be on how to distribute your assets to your loved ones, but there are several different ways to do that. If you’re not careful, your estate assets can be quickly used up, limiting the true impact that your estate assets have on your loved ones’ lives. Most estate planners don’t want that. Instead, they want their assets to last long-term, providing their loved ones with stability for years or even decades. If you’re in that same position, then you need to be thoughtful about how you develop your estate plan to ensure asset longevity. In this post, we’ll look at some estate planning options that you can utilize to help you achieve that goal.
What estate planning tools can you utilize to ensure asset longevity?
You have a lot of estate planning options at your disposal. Here are some that you might want to consider using to give your assets some staying power:
- An incentive trust: If you’re worried that your heirs will squander away their newfound wealth without achieving major life goals, then you might want to consider using an incentive trust. With this estate planning tool, you set a condition upon the release of trust assets. This condition can be just about anything you want, too, ensuring that your named beneficiary meets whatever life goal you think is important for them. For example, you can condition the release of trust assets on graduating from college, having a child or holding a full-time job for specific period of time.
- A discretionary trust: Here, the trustee has full discretion over when to release assets to the beneficiary, and in what amount. So, if you name a trustee you can count on to release assets when needed, then you can ensure that the assets in your trust will last longer.
- A spendthrift trust: This is similar to a discretionary trust in that assets will be released incrementally over time. With a spendthrift trust, though, you set the terms of when those assets will be released and in what amount. In other words, the trustee doesn’t have nearly as much control with this trust type as they do with a discretionary trust.
- A generation skipping trust: This trust leaves assets directly to your grandchildren, ensuring that when they come of age they’ll have the financial resources needed to be financially stable. This will help your assets last longer into the future.
- A legacy trust: If you have significant wealth, then you can work with your estate planning attorney to create this type of trust. The whole purpose of this type of trust is to provide financial support for several generations. It can also carry significant tax incentives.
You have full control over how to handle your estate plan. You can also give lifetime gifts prior to your loved ones prior to passing away so that you can see them enjoy those assets before it’s too late. Just be sure to understand your options so that you can choose those that are right for you and your goals.
Develop the estate plan that suits your needs
With so many options at your fingertips, we understand that the estate planning process can seem confusing. Don’t let it worry you, though. You can find support to get through the process and secure answers to your questions. By doing so, you can navigate the process with confidence, allowing you to rest assured that you’ve done everything possible to protect your interest and your loved ones’ futures.
