Financial Planning Strategies for wealth distribution

Utilizing a variety of financial planning strategies is a key ingredient in the successful wealth distribution for high net worth individuals. Wealth distribution planning ensures that instructions regarding the distribution of assets and possessions after death are carried out. Wealth distribution involves the essential financial planning strategies of creating a will or trust to establish how wealth should be transferred. The vast majority of high net worth investors, 94 percent of households with more than $5 million in net worth, not including primary residence (NIPR) do have a will as do 89 percent of households with $1-$5 million in net worth. Trusts are less commonly utilized financial planning strategies and are used by 44 percent of high net worth households and 31 percent of millionaire households. Individuals who have created a will, have executed the first and most basic of financial planning strategies for wealth distribution. A will is the document for many people that identifies how you would like your property distributed. As one of your financial planning strategies for wealth distribution, you need to make certain that your will specifies who should inherit specific items of property, a guardian and alternative guardian for children and the name of your executor. Your executor is responsible for following through with the directions you leave in your will, including distribution of property, and paying any debts and taxes owed by you after your death. Wills should be updated or reviewed every few years or in the event of a marriage or divorce, the adding of a child to your family and the unfortunate passing of a family member or beneficiary of your estate. This review is essential to your basic financial planning strategies. Trusts are another one of the financial planning strategies used for wealth distribution. One of the more common types of trusts is what is known as a Credit Shelter Trust, also referred to as an AB Trust. This type of trust is one of the most frequently used financial planning strategies in the trust world, due to the tax benefit that is provided and the simplicity of execution. Credit Shelter Trusts allows married investors the opportunity to shelter a portion of their income in the trust, which transfers the assets in the trust to the beneficiaries. This is done because then the assets in the trust avoid estate taxes when transferring to the heirs. One key aspect of this trust is the fact that the spouse retains the right to the trust assets and income generated from the assets for the rest of his/her lifetime. Death is a topic that is difficult for many individuals, and the conversation about how their assets and possessions are handled in the event of death is an even more difficult topic. Even the best of financial planning strategies regarding investments will not be able to prevent the damage done from an estate that does not have a distribution strategy. To learn more about how Financial Planning Strategies can help you, please visit my website:

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