Estate Planning tips to keep your money in the family

Most people do not realize that you need an estate plan regardless of how much money you have in the bank. Estate plans and wills ensure that your assets will go to the intended heirs and not the government.  Any unclaimed estates become the property of the government after a specified amount of time. A will is also necessary if you have minor children since it can dictate who receives custody should both parents pass away at the same time.

Most families are not affected by inheritance tax. Estates must have a value of more than $12.92 million to be taxed by the federal government. However, heirs may be responsible for paying federal income taxes on some assets and retirement accounts.

Once you have completed your estate planning, be sure to notify the individual you are designating as an executor or the guardian of your children. Make sure they are willing to take on the job.

Complex strategies and the ever-changing tax code can make estate planning feel intimidating. However, ignoring this planning can cost even more for your heirs, even if you don’t have a lot of money in the bank. Learn more estate planning tips here.