How to Let Go of Assets

It is never too early to plan how to disburse your estate upon your death. Tax laws can create huge burdens on your estate leaving nothing for your beneficiaries. Letting go of the strings you hold on your assets can be financially rewarding. Read on to learn more.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Safety deposit box
• Will
• Trust
• Attorney
• Beneficiaries
• Assets
• Financial advisor

1. Cut the strings on all property you own that you no longer use or need.
2. Conduct a dry run with your attorney executing the will. This will show you exactly what will happen to your estate and who will harbor the tax burden.
3. Review all arrangements made prior to your death. Does the plan still make sense? Have your assets and loved ones changed.
4. Prepare yourself to sign over power of attorney to a person you trust. Incapacity is the cause for the poor execution of most estates.
5. Learn about the value of your assets. The value of a business does not freeze when the assets get transferred to designated beneficiaries.
6. Make gifts of your assets to your beneficiaries while you are alive. You can retain the tax burden if you choose.
7. Examine which assets--jewelry, stock certificates, money--are kept in a safety deposit box that are taxable after your death. Give these items as gifts while you are still alive.

Tips & Warnings

• The earlier you plan for disbursement of your estate the better of your estate will be.
• A dry run provides an opportunity for you to correct any mistakes in your will.
• Do not wait to give gifts to your beneficiaries.