How to Keep Your Assets in Your Family
We know you’ve worked hard and built a portfolio of assets over the years. That hard work is something to be proud of! And it’s also something that you can pass on to future generations. Today, we’re looking at how to create an estate plan that does that very thing: keeps assets in your family!
Assets
Assets come in all shapes and sizes. From what’s in your bank account to real estate, to crypto. Everything you own makes up your portfolio of assets.
And as you can imagine, every asset has its own value. That value can be market value or sentimental value. Think about your favorite grandparent. Was there an item of theirs that you treasured? What was that item, and what was the market value of that item? Now think about how you valued that item. Regardless of the market value of the item, you loved it! Sentiment is powerful. So remember that when you’re determining the value of your assets, some of them may be worthless to the world, but they mean the world to a loved one. A good estate plan values both kinds of items: those with high market value and items that are only sentimental.
Keeping Assets in your Family
As we live our lives, we accumulate our estates. Estate is just a fancy word for everything we own. And like we discussed above, those things hold either market or sentimental value. So, how do we create a plan that makes sure the items that hold that market or sentimental value stay in the family?
Below, we will discuss a few options for keeping your assets in the family.
Gifting Now
Some items are best gifted now. Maybe it’s your grandmother’s brooch, or cuff links that have been passed down from son to son, or a beloved copy of a classic novel that grandparents have read with their grandchildren for generations. Yes. You can wait to have those items distributed after you die, or you can gift them now.
The benefit of gifting now means you get to experience the joy on the face of your loved one when you give them the item. And you get to share the story of how this item has been passed down over the years. This moment gets to become a part of the family lore, and you get to be in the moment.
You can also gift larger items such as real estate or motor vehicles. But it’s always best to check with your estate planning attorney and financial advisor before giving away any items of significant value. This is because the IRS does require you to file a gift tax return if your gift is above the exemption limit. It’s best to work with skilled professionals to make sure you limit your tax liability.
Will and Memorandum
Your Will allows you to bequeath your estate to any beneficiaries you choose. “Bequeath” is a fun Old English word that means to leave something to someone in a Will. So, you can list out who gets what in your Will, and your executor will work with the probate Court to make sure everything gets where it’s supposed to go. Eventually. Probate is a long, arduous process.
In Georgia, it is also legal to attach a Memorandum, often referred to as a personal property list, to your Will. This document can list out exactly which items you want each individual to receive. It must be signed and dated by you. It cannot override or contradict your Will, though. It can only address tangible personal property; think of furnishings, silverware, and jewelry, all of your stuff.
A Will and Memorandum is an excellent way to ensure that each item is distributed to the people you wish to get each item. But a Will may not be the very best way. Wills must go through the probate process are more easily contested than a Trust.
That being said, a Will is better than nothing, and everyone needs a Will— even if you are using a Trust too.
Trust
The best way to keep assets in the family for generations to come is to utilize a Trust. This is because you can create a Trust that requires certain rules to be followed in order for beneficiaries to receive their inheritances. You can create rules that distribute allowances rather than lump sums. You can put real estate in a Trust with provisions for how the property is maintained, used, and cared for. You can create Trusts that provide for beneficiaries with special needs that will not disqualify them from government resources like Medicare.
The use of a Trust can cascade wealth down your family line for generations to come. And potentially the greatest thing about a Trust is that it avoids probate! This means that your family won’t have to show up in court and provide accounting to the court for months on end. And it also means that your estate won’t become a matter of public record, meaning your family business stays private.
Passing it on
Your estate matters— no matter the size. What you own should go to whoever you want it to go to. And your estate, which you’ve worked hard for over your lifetime, should be passed down your family line if you want it to!
Proper estate planning helps you pass it on, and once it’s done, it gives you peace of mind for the future! You can enjoy the moment you’re in and skip worrying about the future because you have a plan, and it’s going to benefit your family!
Are you ready to enjoy the moment and stop worrying about the future? Call us at (404) 736-6066 or visit our website to schedule a consultation about how we can help you pass your assets and wealth on to future generations!