Wealth Management and Estate Planning: Why They are Essential

Posted on Jun 5 2018 - 1:00am by Business Day TV

Wealth managementPersonal finance is a tricky matter. While most financial advisers recommend that a person save up to 20% of his or her income, most people find this easier said than done. Financial institutions like the Palmetto Citizens Federal Credit Union urge consumers to put their savings in long-term investments. This will allow them the flexibility to grow their savings for various future needs.

Wealth Management

One of the best ways to handle savings is to make use of wealth management services. This is geared toward the needs of the individual, whether for the purpose of trust services or estate planning. It is a flexible solution, which can also be used in different ways.

For one with substantial wealth, trust services ensure that the person’s estate and financial portfolio are kept safe after death. This is done for the safety and security of the heirs and the estate. Estate planning, meanwhile, includes the passing of one’s valuables as well as values. It also includes any instructions for the care of the person if he or she is disabled before death. It also names a guardian for the minor children, as well as an inheritance manager. Estate planning is all about handling the transition of finances from the deceased to the heirs while minimizing taxes during the process.

Reducing Inheritance Taxes

Estate or inheritance taxes are due when a person inherits money or any valuable from a deceased family member. There are several ways to limit the amount of taxes due. However, these require some advanced planning to make use of estate planning techniques. Otherwise, the heir would be paying full taxes on the property or any other financial inheritance.

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Estate planning is for everyone, as it also avoids messy and petty squabbles about a person’s estate.