Effectively incorporating all aspects of your financial situation, from your retirement goals to your philanthropic aspirations, into your estate planning process isn’t always easy. This is especially true if you have accounts and investments with multiple financial institutions, as well as real estate and other assets. wealth management is an integral part of successful estate planninghelps you find and catalog your assets while maintaining and growing them. This allows you to secure your legacy and prepare for your family’s future.
Estate planning is especially useful if you plan to pass on a large amount of property to your heirs or if you have a large number of assets to consider. estate planning Wealth management and estate planning are not just for wealthy families, but are important for people at all stages of life.This post explains how to do that Asset management servicesSimilar to what we offer at Union Bank, it can help you prepare for the unexpected and give you and your loved ones peace of mind during uncertain times.
investment management
investment management It plays a vital role in estate planning, serving as a tool to grow, preserve and diversify your wealth, allowing you to maximize the value of your property for future generations. By aligning your specific investment strategy with your unique level of risk tolerance, tax considerations, and traditional goals. investment management Not only will your estate be able to withstand market fluctuations, but it will also allow you to effectively implement your plans for how to distribute your assets to your heirs and charities.
The main components of investment management are:
Growth of wealth:
of Investment management goals It’s about growing your assets over time and increasing the resources available to your heirs and philanthropic goals.
Asset allocation and diversification:
In order to increase wealth, investment manager We select products across a variety of asset classes and work with you to choose which specific investments to use to diversify your portfolio. They aim to match your portfolio to your risk tolerance, balancing risky and conservative investments to increase long-term returns without putting your entire nest egg at risk. .
Tax efficiency:
moreover, investment manager We strive to structure your investments for tax efficiency, maximizing the value of your estate and reducing the tax burden for both you and your successors.
legacy planning:
An investment manager can work with you to align your investment strategy with traditional goals, such as supporting a specific cause or providing specific assets for your heirs.
Post-retirement strategy
Work with an investment or asset manager and they will help you devise a strategy to liquidate assets retirement It’s a way to minimize the risk of outliving your taxes and savings while providing a steady stream of income and leaving you with something to pass on to others.
Accounts typically included as part of an estate planning strategy include:
- individual retirement account: Traditional IRAs and Roth IRAs have different tax benefits. Withdrawals from a Roth IRA are generally not subject to income tax, making it a preferable option for individuals who plan to pass on a portion of their IRA to their heirs. An investment manager can help you determine which IRA is right for your situation or work with you to rollover a traditional IRA to a Roth IRA while minimizing taxes.
- 401(k) and similar worker assistance plans: These plans can also be passed down to your heirs, who can distribute them in lump sums or set aside them in their own accounts. Depending on how you transfer your account, there may be tax implications, so it’s important to work with your asset manager.
- negotiable certificate of deposit: CDs can be a useful investment tool, especially for individuals nearing retirement. These are very low risk, guaranteed returns, and unlike market investments, are FDIC insured up to $250,000.
- money market account: Like CDs, money market accounts can be helpful for people nearing or already retired. Interest rates can fluctuate, but you have easy access to funds and no market risk.
personal trust
Trusts are a common way to protect assets so they can be passed on to your heirs and are an important part of estate planning to preserve wealth for multiple generations.There is many types of trusts, choosing the format that best suits your financial situation and your heirs’ intentions can be complex. However, experienced investment managers can sort out the differences and Decide if trust makes sense for youIf so, which type of trust will meet your needs?
What is a personal trust?
a personal trust A legal arrangement in which an individual (the grantor) gives another person or entity (the trustee) the right to hold and manage property for the benefit of a third party (the beneficiary). Work with your financial professional to create a trust agreement that specifies the rules and conditions under which assets within the trust will be managed and ultimately distributed.
Trusts can be used to manage a variety of assets, including savings accounts, real estate, stocks, valuables and collections, and other types of property.
Why would you want to use a personal trust?
Adjusting a trust can take time and involve upfront and ongoing administrative costs. However, it can have significant financial benefits for beneficiaries, with assets protected and large estates potentially reducing inheritance tax. In addition, trusts provide you and your family with the following benefits:
avoid probate
Assets placed in a trust bypass the probate process, can be time consuming and costly. This allows beneficiaries to access these assets more quickly after the settlor’s death and prevents creditors from reducing the value of the estate.
maintain your privacy
Unlike a will, which becomes public record during probate, a trust allows the distribution of assets to remain private. If you are concerned about disputes over the distribution of assets, trusts can be an effective way to reduce friction between family members.
Gain greater control over asset allocation
A trust allows you to specify when and how assets are distributed to your beneficiaries. This is especially useful if the beneficiary is a minor or if you want to stagger distributions over a period of time.
Plan for special situations
Trusts can be customized to accommodate a variety of special situations, such as providing for dependents with special needs or running a family business.
Examples of types of personal trusts
This is not a complete list, but some of them are listed below. Most common trust form:
revocable trust
Also called a living trust, it can be changed or canceled while the trustor is alive. If you want more control over your assets, you may want to choose this type of trust.
irrevocable trust
These trusts cannot be changed or canceled without the permission of the beneficiary. They provide greater asset protection and can save on income and estate taxes, which is not possible with a revocable trust.
charitable trust
Charitable trusts are designed to benefit a specific charity or public interest.
special needs trust
They are designed to serve people with special needs without disqualifying them from receiving government benefits.
A trust that skips generations
This trust allows the settlor to transfer an amount tax-free to a beneficiary who is at least two generations younger, usually a grandchild.
Real estate services and payments
asset management and Real estate planning and settlement They are often intertwined. Many wealth management services offer estate planning as part of their services. Proper asset management also simplifies estate settlement and reduces stress for heirs. Here are some ways Union Bank can help you with your problems. Estate planning and estate settlement:
We ensure that your wishes are realized through a clear plan.
Through careful financial planning, including establishing a trust, we can help ensure your assets are protected and distributed to your beneficiaries according to your wishes.
Acting as executor of your estate:
Union Bank acts as the executor of your estate and manages all responsibilities associated with this role, such as repaying debts and settling taxes.
Distribution of assets:
Union Bank can also oversee the distribution of assets according to your estate plan and ensure each beneficiary receives the inheritance they intended.
Providing peace of mind:
With Union Bank handling these complex tasks, you and your family can rest easy knowing that all your real estate matters will be handled quickly, professionally, and locally.
When is the best time to start estate planning?
You never know what’s going to happen, so it’s never too early or too late to start estate planning. However, there are certain circumstances, milestones, or life-changing events that can set a precedent for estate planning or plan updates. These include:
- Owning, buying, or selling real estate
- married/partnered or married
- have children or grandchildren
- Inheriting assets or receiving windfall profits
- get divorced (or the heir gets divorced)
- Death or other change in circumstances of the listed heir
- Retirement or change of job
- Starting or selling a business
The most important aspect of estate planning is making sure that your current plan matches your current financial and living situation, as well as the situation of your heirs.
How Union Bank can help you prepare your property
At Union Bank, our wealth management and estate planning services help individuals and families develop strategies to build and protect assets and ensure a sustainable legacy for future generations.from investment management services to real estate services and personal trustwe offer comprehensive planning options to simplify the process for both you and your heirs.
Whether you’re a retiree, business owner, new parent or newlywed, looking for advice on wealth management, we can help.Please contact Union Bank Wealth Management Team or visit any of the following our branch Today we’ll be working with professional asset managers in Vermont and northwestern New Hampshire.
