The Role of Wealth Planners in Estate Planning and Asset Protection

A wealth planner can assist you in developing a financial plan to build, protect, and transfer your wealth. They create strategies for taxes, retirement, legacy, and business planning. Having a solid financial plan helps you save for short-term and long-term goals. Here is the role of wealth planners in estate planning and asset protection:

Trust Creation

Trust creation involves planning for a property owner to move their assets to a steward. Following the instructions, the trustee manages and transfers the assets to the chosen beneficiaries. With the help of a wealth planner, you can create a living or testamentary trust. In estate planning, trusts help you decide how and when your assets are distributed, during your life and after death. Wealth planners help shield your properties from lawsuits, creditors, and legal claims by moving your assets into irrevocable trusts. This keeps your wealth within your family.

Will Drafting

A will gives you control over who inherits your property and fulfills your wishes after death. A planner helps you understand the implications of your choices during will drafting. They explain the benefits of setting up a living will and guide you through the tax consequences of different asset transfer methods. You can lower your taxes by giving money or assets to the beneficiaries of your estate while you are still alive. Planners regularly review and update a will according to your wishes, or when major life events happen.

Insurance Planning

Your wealth planner can help you choose the best coverages and amounts of insurance for your needs. They review your current insurance policies and update your beneficiaries to prepare them for contingencies. Insurance planning allows your family to be financially covered after your death. Through life insurance, your beneficiaries can pay off debts and cover estate taxes without selling your assets.

Asset Titling

A planner assists in titling your assets correctly. Asset titling means deciding whose name to put on ownership documents for bank accounts, houses, or investments. Your financial advisor guides you on whether to own assets individually or jointly with someone else, or through a trust. Asset titling helps you pass assets directly to the people you choose, without going through probate. Depending on how your assets are titled, they can be protected from cases involving trusts or certain types of joint ownership.

Power of Attorney

Financial planners help set up a power of attorney for clients. They teach you why you must choose someone you trust to make decisions when you cannot. Your advisor helps you complete legal paperwork correctly and gives the attorney the right authority to act on your behalf. In estate planning, a power of attorney allows the chosen agent to make financial decisions that help keep your estate in order.

Learn More About a Wealth Planner’s Roles

An experienced planner facilitates generational wealth transfer by planning the estate distribution and reviewing beneficiaries. They incorporate life insurance and 529 plans to protect your assets from the risk of liquidation to settle debts. They can also advise you on charitable donations to minimize tax burdens. Contact a reputable advisory services company to discover their service offerings.