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The bottom line is that a trust provides far more potential asset protection than an outright inheritance. Depending upon the needs of your family, an estate planning attorney can create a trust for you that protects assets and preserves them for your beneficiaries.
Naming beneficiaries on any of your accounts, assets and life insurance contracts is the easiest and most efficient way to transfer wealth. It enables the administrator of the estate to follow through on the wishes of the deceased immediately without the need to go through the probate process.
How can I avoid paying taxes on my inheritance? Consider the alternate valuation date. Put everything into a trust. Minimize retirement account distributions. Give away some of the money.
The Revocable Living Trust will allow you to set terms so that if you pass before the kids are of age the Trust will turn irrevocable, protecting the assets from anyone but the children, and can be paid out on your terms (At certain ages or for whatever purposes).
Create a Trust Trusts protect your childrens interests, and the assets in them avoid probate (which maintains privacy). You can appoint a company, such as the one that helped you establish the trust, or a knowledgeable and trusted person as the trustee to manage assets and control distributions from the trust.

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My Childrens Inheritance: The 5-Point Plan #1 Give My Children Financial Knowledge #2 Contribute to Their 529 College Funds #3 Invest in a UTMA/UGMA for Their ``20s Fund #4 ``Parent Match Roth IRA Retirement Fund #5 Encourage Them to Own a Business Bonus Trust Fund
In these circumstances, a trust can help set up specific management plans for your assets, provide tax benefits and give your beneficiaries time to adjust to having assets held for them. If you have a straightforward estate and mature adult children, leaving assets outright to them might be appropriate.

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