Individuals with a high net worth are not typical investors. When you accumulate a large amount of assets, your motivation is not always to make more money. Patriot Legal Group in Orlando understands the goal for high-net-worth people when estate planning and investing: to preserve your wealth and protect your assets for yourself and the generations that follow.
This makes strategic estate planning critical for high-net-worth families. To keep your financial legacy intact, you should consider the following when you’re planning your estate.
- Prioritize wealth preservation
- Minimize estate taxes
- Plan for asset transfers
No one is invincible simply because they are wealthy; anyone is subject to sudden income loss because of illness or injury, risk of lawsuits, and market volatility. High-net-worth individuals and families have more to lose than the average family, which makes the estate planning process critical.
An estate plan is a legal document or set of documents that provides clear instructions on how you want your estate distributed upon death.
Your will should list all your assets, including the following:
- Real estate
- Cars
- Jewelry
- Bank accounts
- Personal property
Your estate plan will also designate a power of attorney for financial and healthcare-related matters.
There are several benefits to having an estate plan in place. Chief among them is that you have full control over what happens to your assets after you pass on. The assets of people who pass with no estate plan in place are turned over to probate court. When that happens, you have no control over who receives your assets.
Creating an estate plan helps ensure the distribution of your assets is less time-consuming and costly. It also provides you the opportunity to make your wishes known about how your health and finances will be handled.
Patriot Legal Group knows estate planning is different for everyone. We can help make the process of estate planning easier.
Following are a few considerations to keep in mind for your high-net-worth estate:
- Build a plan that considers tax laws related to inheritance
- Create a living trust
- Form a Limited Liability Company (LLC)
- Set up an irrevocable trust
As someone with a high net worth, you have a sizable share of assets and finances to distribute. Since the future is unknown, you’ll want to make estate planning a top priority.
You should choose your financial power of attorney carefully. When you begin the estate planning process, you’ll need to name a person who will have control of your finances in the event you cannot take care of them yourself. The financial power of attorney document legally dictates who this person will be.
You will want to choose someone who is reliable and who will work to honor your decisions. High net worth brings complicated financial decisions, so choosing a person who is familiar with wealth could be ideal. Carefully choosing your power of attorney ensures your finances end up in trustworthy hands.
If you are unmarried with a net worth above $11.5 million or married with a combined net worth of more than $23 million, up to a third of your estate or even more could go to the federal government in the form of estate taxes. Florida residents are fortunate because they are not required to pay additional estate taxes to the state.
Still, you will want to take action to keep as much of your estate in the hands of your family as you are able. To protect the money in your estate, you could consider the following options:
- Buy a life insurance policy large enough to pay at least a portion of your estate tax
- Gift money to people while you are alive
- Set up a charitable trust
- Set up a foundation or family limited partnership
The estate planning attorneys at Patriot Legal Group will explain these and other options to help you keep a large portion of your estate from going to the government.
You will also want to consider setting up a living trust if you are a high-net-worth individual.
A living trust creates a legal relationship with a person who is called your trustee. They will become responsible for your assets if you become unable to manage them yourself. This is another way to ensure your wealth doesn’t pass into the wrong hands.
A Limited Liability Company (known as an LLC) is another option for someone with a high-net-worth to consider including within an estate plan. There are many things to consider before setting up an LLC and speaking with an estate planning attorney is advised.
Trusts that are not revocable or amendable after creation to change the terms of the trust are called “irrevocable trusts.” These types of trusts can provide advantages in estate planning but have many different considerations before you create one.
Call the Orlando High-Net-Worth Estate Planning Lawyers at Patriot Legal Group
As a high-net-worth person, you’ve worked hard to accumulate significant wealth. You want to make sure your loved ones are taken care of after you are gone, so take action to start your estate planning today.
At Patriot Legal Group, we will listen carefully to your needs, explain your options, and guide you through your decisions. Call us or fill out our convenient contact form to get started
