Skip to content 
Securing Tomorrow Today: The Pillars of Estate Preservation
Navigating the complexities of estate preservation doesn’t have to be a daunting task, especially when safeguarding your wealth for generations to come is instrumental. The team at DeFreitas & Minsky LLP is dedicated to guiding you through this critical process, demystifying all intricate aspects and helping you secure tomorrow today.
The Significance of Estate Preservation
Do not misconstrue estate preservation as merely a concern of the rich. Regardless of the size of your estate, preservation plays a pivotal role in ensuring that your hard-earned assets are distributed as per your wishes and sustains your family’s financial future beyond your lifetime. According to a 2021 study by Cerulli Associates, approximately $68 trillion of wealth is anticipated to change hands in the USA over the next 25 years (source). This poses enormous estate preservation challenges for families, calling for thoughtful planning and robust strategies.
At DeFreitas & Minsky LLP, we firmly believe that understanding the foundations of estate preservation is quintessential in achieving these goals.
Effective Planning is Key
Strategic planning forms the basis for estate preservation. By devising an effective estate plan, you can ensure that your wealth is used optimally to fulfill your aspirations. Moreover, through proper organization, you can mitigate the estate tax burden that can significantly erode your assets’ value.
Consider these key points in effective planning:
– Thoroughly assess all your assets
– Understand the estate tax laws and opportunities in your state
– Involve an experienced financial advisor or legal counsel
– Plan for a potential incapacity
Understanding the Role of Trusts for Estate Preservation
Trusts serve as a prominent vehicle for estate preservation, offering a plethora of benefits. They can be tailored to align with specific objectives, facilitating a substantial reduction in estate taxes while simultaneously ensuring controlled distribution of your wealth.
A 2020 EY report pointed out that a trust can diminish an estate’s size by as much as 40%, thus potentially saving millions on estate taxes (source). A particularly popular option is the Revocable Living Trust, which provides flexibility and control while maintaining privacy.
Risk Management – An Underappreciated Aspect
One aspect of estate preservation that is often overlooked is “risk”. Unexpected events such as lawsuits, accidents, or financial instability can jeopardize your hard-earned estate. That’s where risk management comes into play.
You should consider investing in comprehensive liability insurance and continually reviewing it to ensure it adequately covers your estate’s value. Further, placing assets into a trust can provide an additional layer of protection.
The Power of Gifting
Strategic gifting can play a pivotal role in estate preservation by mitigating estate taxes and ensuring that your wealth benefits your loved ones during your lifetime. The IRS currently allows an annual exclusion of $15,000 per recipient for tax-free gifts, which can help reduce your taxable estate significantly over time (source).
Incorporating Philanthropy
Philanthropy can serve as an effective tool for estate preservation, reducing estate taxes while fulfilling altruistic objectives. Bequests, charitable trusts, or donating appreciated assets can translate into substantial tax deductions.
The Role of Life Insurance in Estate Preservation
Life insurance can provide a tax-free lump sum for loved ones after your demise, replacing lost income and covering immediate expenses. It can also play a vital role in offsetting estate taxes, protecting business interests, and serving philanthropic goals.
Securing Your Tomorrows Today
Estate preservation is not just about financial planning. It’s about securing the future of your loved ones, perpetuating your legacy, and shaping a better tomorrow. At DeFreitas and Minsky LLP, we strike a balance between a personalized approach and professional expertise, ensuring that your estate preservation objectives are met meticulously and effectively.
Remember, the best time to plan for the future is now. Let us help you secure your tomorrows today.
