Committed To A Streamlined, Lower-Stress Client Experience

What is the Best Way to Pass on Your Assets?

On Behalf of | Feb 17, 2023 | Estate Planning

Florida residents can have a hard time deciding on how to pass on assets in an estate plan. This is understandable, since every family situation is unique and so are your financial circumstances. However, a recent news article had a few tips for those who are looking for the best way to pass on assets.

Different paths

First, the recent article noted that one option is to leave assets to heirs “outright,” meaning that there are no restrictions on the assets in question and they fully become the heir’s to own once passed. However, some people may not be completely comfortable with this option, particularly if the heir is young and, perhaps, not fully prepared to handle significant assets.

So, another option mentioned in the recent article is to pass on assets in “stages” through trusts. This means, for example, that a certain percentage of the total assets might be distributed at a certain age, like 25 years old, then another percentage at 30 years old, and so on. Another option is a “discretionary lifetime trust,” in which the entire discretion for how assets are distributed to heirs is determined by the trustee over the lifetime of a specified heir or heirs.

Of course, as the article mentioned, a combination of distribution techniques might be the best course of action in any given situation. Trusts can be extremely helpful, but may not be the best option for every situation. As mentioned above, each family situation is unique. Be sure to spend the time finding the best path forward for your family and financial situation.