As a high-net-worth New Hampshire citizen, you likely want to protect your inheritance for your heirs. Part of this protection may be to help avoid the probate process and to minimize any estate taxes that come along with their inheritances. Estate planning is a great way to legally prepare your assets for future transfer.
Hire an attorney
When it comes to estate planning, we can’t stress enough that you need to hire an attorney. Estate planning is complicated even for those who do not have a high net worth. Adding more money and assets just complicates the process. Having an estate-planning attorney help you craft your estate documents, like powers of attorney and your will, can help to ensure that it’s being done correctly. You don’t want to try and go it alone and hope that it all works out for your heirs upon your passing.
Understand the various taxes
Unfortunately, passing down assets from one person to the next is more complicated than just signing over a title. The state and federal governments use different types of taxes to help them profit on the endeavor. Some of the most common taxes include gift taxes, income taxes, generation-skipping taxes, transfer taxes, and estate taxes. Your attorney should be able to help you with understanding what these various different types of taxes do and how to minimize the amount that you and your heirs are paying for these taxes.
As you’ve likely discovered by now, having a high net worth puts you at a higher risk for loss than the average individual. For this reason, it’s imperative that you take the time to go through the estate planning process to protect your generational wealth. By utilizing these tips, you can set yourself up for the best chance of success with your estate-planning process.