Retiring in Indiana can leave you several good memories with family and friends. If you’d like to extend your legacy to the next generation by leaving them an inheritance, you’ll have a few choices. Doing so before you retire requires you to calculate the money you’ll need to live comfortably. Taking action by setting up a trust is an excellent way to ensure your wishes are met after you die.
It’s essential to have enough money to live comfortably after you retire
If you own a home and don’t have many expenses, you may want to leave an inheritance to your children while you’re still alive. When considering this option, it’s crucial to calculate the amount you’ll need to live off of in the future. Failing to do so could be detrimental if you pay a significant amount in medical costs.
Setting up a trust gives you control
When you want to leave money and other assets to your children, setting up a trust may be an excellent option. It’s managed by a trustee and allows you to create stipulations that match how you want your inheritance to be distributed after you die. Setting up specific parameters can come in handy if you want to dole out a portion of your money periodically. Having a part of it used strictly for college tuition can also be done. You have many options available when you go this route.
Taxes must always be considered when you are working on an estate plan for the future. Utilizing a tax-saving trust may be a choice you should consider. Using an irrevocable life insurance trust can help shelter your death benefit amount from being taxed, giving more of it to your children.
Examining your finances and options for dividing your inheritance should make it easier to create a solid estate plan meeting your requirements and expectations.