Estate planning is necessary to ensure living heirs are financially protected when you die. The process can be confusing, but Ng & Niebling has a few helpful strategies to make it easier. Based in Honolulu, HI, the law firm provides area residents with step-by-step legal instruction and services to help them navigate trusts, living wills, and estates.

The Top 3 Effective Strategies for Estate Planning 

1. Draft a Last Will & Testament 

The last will and testament is one of the most important tools to have in estate planning; it specifies how assets should be divided when you die. Without the legally binding document, you and beneficiaries have no control over the estate. Property and additional assets could end up in probate court, where judges decide how to divide funds and belongings. 

2. Create Trust Funds  

If you have a sizable estate, consider creating trust funds. This is a good solution if you’re worried about how family members will spend their inheritance. With this strategy, the estate is controlled by an appointed trustee. It’s this person’s responsibility to dispense funds to your heirs. If you are looking for tax breaks, opt for an irrevocable trust. Because money is no longer legally under your control, it’s not subject to estate tax. Trusts do require income tax payments, though. 

3. Divide the Estate While You’re Alive 

Assets are valued and taxed after you die, with funds from 401(k)s used for payment. If you are worried about high taxes, you can reduce them by dividing the estate while you’re alive. The IRS allows individuals to gift up to $14,000 per person each year.  

To schedule a free initial consultation about estate planning or additional legal services in Honolulu, call (808) 732-7788 today. Visit Ng & Niebling online to learn more about the qualified attorneys at this local practice.