Estate Planning Options For High-Net Worth Individuals
All adults can benefit from a comprehensive estate plan. Still, the more property and assets you own, the more important it becomes to work with a St. Petersburg estate planning lawyer. There are many other considerations, such as tax implications, that impact larger estates and make it even more critical for high-net worth-individuals to understand their estate planning options.
Establish Trusts so Your Loved Ones Avoid Probate
Funding a revocable trust with your assets and property throughout your lifetime is an effective way to help your loved ones avoid the probate process and minimize their tax obligations. Irrevocable trusts are separate legal entities from the people who create them and so, they are not considered during the probate process or for tax purposes. There are many different types of trusts so it is imperative to speak to an estate planning lawyer who can recommend one that is right for your situation.
Select a Professional Trustee
The majority of high-net-worth individuals use professionals to assist with their financial strategies and investment decisions. This should continue when planning for your estate and establishing a trust. You can select anyone you choose as a successor trustee. Choosing someone you know personally, though, has a greater chance of exposing your property to mismanagement and of the trustee breaching their fiduciary duties. Instead, it is better to use a professional trustee, such as a financial institution, to ensure it is administered properly and to remove family dynamics from the situation.
Create 529 Accounts for Students
If you have students who you intend to name as beneficiaries, a 529 account can be helpful. These education savings plans allow you to contribute to the student’s education without incurring income or gift taxes. Parents and other loved ones can contribute up to $19,000 in 2025. It is also possible to contribute up to $95,000 in one year but the same beneficiary cannot receive any more contributions for the following five years.
Consider Charitable Donations to Minimize Estate Taxes
When choosing beneficiaries, you do not have to limit yourself to only your loved ones. You can also include charitable donations in your estate plan to reduce the total amount of your estate that is subject to taxes. While Florida does not have any estate taxes, high-net-worth individuals are often subject to taxation at the federal level. By making a charitable donation to a social cause, religious institution, or a donor advised fund. By designating a charitable cause as a ‘residual beneficiary,’ they will receive any property that is left after debts and bills are paid. This is another great way to ensure estate taxes are avoided.
Our Estate Planning Lawyer in St. Petersburg Can Advise You of Different Strategies
There are many strategies that can help high-net-worth individuals protect their loved ones even after they pass away. At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning lawyer can advise you of what those are and help you choose a strategy that is right for your situation. Call us now at 727-471-5868 or contact us online to schedule a consultation and to get the legal help you need.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
