How to Protect Your Assets If You Pass Away
After spending years obtaining assets and wealth, the next step you should focus on is how to protect your property. Proper estate planning makes it easier for you to keep your assets secure even after you pass away.
5 Ways to Ensure the Safety of Your Assets After You’ve Passed Away
- Write a Will
Having a will is the most common method used in estate management. A will is a legally binding document that allows you to specify how you would like your property to be distributed after death. Many estate owners use wills to distribute assets to family members, charities and other parties. A will allows you to be detailed in how your assets should be used/distributed.
- Settle Outstanding Debt as Soon as Possible
Debt can make your estate more challenging to administer after you pass away. Because debtors will almost always claim repayment against your assets, paying off outstanding mortgages, loans and other bills can help simplify estate management in the event of death.
- Put Your Assets in a Living Trust
Another useful technique for estate management is putting your assets into a living trust. There are two main types of living trusts: irrevocable and revocable. A revocable trust gives you control over your estate while you are still alive – and you can specify what will happen to the trust after passing away.
Having an irrevocable trust means you’ll transfer your assets to someone else (the trustee), and they will have legal control over the trust moving forward. An irrevocable trust can help you avoid the seizure of personal assets. You can also use an irrevocable trust to reassign properties and reduce your income level (or tax classification) after death.
- Stay Insured
Insurance coverage always comes in handy against unexpected events. Your property, such as homes, vehicles and buildings, should always have insurance coverage. Furthermore, life and disability insurance can help your beneficiaries avoid the financial burden that may come along when someone passes away.
- Have More than One Executor
If your estate is large, you should consider balancing powers by having more than one executor. Ideally, two to three executors or trustees can keep each other in check and execute your will as desired. Having multiple executors is particularly handy for large families with complicated relationships.
If you need help with estate planning in Las Vegas, Clark County Credit Union (CCCU) is the professional service you need. At CCCU, we have extensive experience in banking, saving and financial management. We can help you make better estate planning decisions while keeping your assets safe long after you pass away. Check out Banzai for a wide variety of financial resources or call us at 702-228-2228.