Upon an investor’s passing, real estate investments must go to the right beneficiaries. Here are tips for estate planning with real estate investments.
Understanding estate planning
Estate planning creates legally binding, tailor-made documentation for outlining an investor’s final wishes for their assets upon their death. Estate planning ensures that possessions and properties go into the right hands after the investor’s passing.
Tax planning
A tip for estate planning with real estate investments is seeking protection. If you have a high estate value, a lawyer or financial adviser will likely recommend setting up a trust.When naming beneficiaries, consider how the inheritance will affect them. Not everyone is in a position to financially cover taxes and fees associated with large inheritances. By putting your estate into a trust, beneficiaries can avoid probate after your passing.
Asset protection
Many real estate investors and owners accumulate various unique properties. Because of this, a trust-based estate plan can protect assets in life and after your passing. Trusts can also provide legal protection for trustees. Effective estate planning can help future generations maintain real estate assets. Real estate investors can place their assets into trusts to keep them safe for beneficiaries upon the investor’s death.
Creating an estate plan
Creating a plan is essential for real estate investment estate planning. With the help of a trusted estate plan professional, investors can obtain the necessary documentation for transferring their assets to beneficiaries upon their passing. Real estate investors can also partake in Delaware Statutory Trusts, as they can create generational wealth, minimize time spent on managing properties, and increase income.
Review your beneficiaries
Reviewing your beneficiaries for estate planning can benefit real estate investments significantly. Firstly, check that your insurance and retirement accounts consist of beneficiary designations and update any information that needs changing.Ensuring the right people receive your investments will bring you peace of mind knowing it’s going into capable hands. Lastly, name your contingent beneficiaries, and don’t leave any blank beneficiary sections in case an account goes through probate.
