subject: Wealth Transfer Article by Puritan Financial Group [print this page] Wealth transfer is one of the important considerations you should include in estate planning for your retirement. Aside from making sure that you invest properly, and plan for the management of your assets in case of incapacity, you also need to transfer your wealth to your loved ones efficiently. You can do this with a number of methods, which include traditional wills, the designation of your beneficiaries, and joint tenancy.
A traditional will is one of the most popular ways to transfer wealth when the retiree passes on. The will needs to be filed and go through probate at the person's death. There have been some issues with this type of wealth transfer method, such as the costs of probate court, privacy, and delays, causing many to look for other wealth transfer options.
Beneficiary designations automatically pass some assets at the person's death to his or her heirs. Beneficiary designations typically come with insurance policies, retirement accounts, and annuities. Wealth transfer with this type of method is faster than others, although it doesn't afford much flexibility to cover the range of possible asset-transfer situations. Beneficiary designations can also force transfers even when the scenario is unfavorable.
Property can be transferred to a living joint tenant with joint tenancy. However, the assets concerned can be taken to probate court when one of the tenants dies. You can opt to add one more joint tenant to avoid probate, for example, by placing a child's name in a property deed or your bank account, although the effort can cause more capital gains exposure and higher risks to other joint tenant creditors.
You can guard your asset management against uncertainty by establishing and using solid strategies for wealth transfer. Seniors are recommended to consider wealth transfer planning early one, as the strategy gives you the chance to move assets from your estate within your lifetime and give your loved ones the best benefits. Talk to your financial planner to know more about transferring your wealth.
Wealth Transfer Article by Puritan Financial Group
