Have you put off planning your estate? Creating your estate plan is easier than you think. By having a solid estate plan in place, you can help ease the burden on your family in the event of your passing.
Will and Estate Planning, put simply, is the process of arranging one’s affairs for when they pass away. NCH partners with an independent legal counsel to provide many different types of estate planning, from revocable living trusts to multi-generational dynasty trusts, through our in-house independent law firm.
There are many benefits of estate planning. Will and Estate planning helps you make decisions about the distribution of your wealth that a probate judge would otherwise make for you. To most, the concept of estate planning sounds relatively straightforward. You probably feel that you should dictate how and to whom your assets are distributed after you pass away. The reality of estate planning, however, is not always so simple.
There are a number of factors to consider when preparing an estate plan, including, but by no means limited to, the following:
- The value and types of your assets
- Your current and future income
- Your distribution desires
- Your mental and physical condition
- Other objectives, such as leaving a legacy, providing for a charity, taking care of your children or grand-children, or providing for someone with special needs.
The most common estate planning instruments are wills and living trusts. There is a common misconception about the need to have a will or a living trust. Many assume that they only need a simple will to take care of their affairs when they pass away, and that only the wealthy need to have a trust. While this may be true in some instances, it often also leads to unexpected results.
Estate Planning: Benefit of Having a Corporation
One of the most practical uses of a corporation is in providing for a convenient transfer of wealth and assets to one's heirs. The corporation allows assets (that would, by their nature, otherwise be difficult to split evenly) to be divided and controlled in precise increments.
Your corporation can be a helpful intermediary for disposing of property. Under this estate plan for business owners, you would transfer selected assets to your newly organized corporation in exchange for its shares of stock. You can then bequeath or transfer the desired amount of shares to your designated beneficiaries. These shares may be distributed either all at once or over a period of years to take advantage of the annual gift tax exclusions. The advantages are:
- Property held in the corporation may be safer from creditors that if owned by the donor or recipient of donations.
- The donor gains considerable flexibility in selecting the number of beneficiaries, as well as the division of ownership each will receive.
- The donor can immediately give beneficiaries shares of stock in the corporation that holds the assets, to avoid having to sell the assets in order to divide them up.
Estate planning is one of the most important steps any person should take to protect their assets from potential estate taxes and to avoid probate; it's vital to have a basic estate plan in place.
For more information on estate planning for business owners and individuals, please give NCH a call at 1-800-508-1729.
*Legal Disclaimer – Nevada Corporate Headquarters, Inc. has prepared the content of this website for informational purposes only. It is not legal advice. Our legal services are provided by an in-house independent Nevada law firm.*