Sooner or later you will need to start thinking about the time you have left in life. It’s a natural part of our existence that we have to come to terms with. We won’t be here forever so we need to make sure what we leave behind is given to the right people. An asset is something like a property, business or even a vehicle. It’s something of notable worth and is somewhat of a financial tool. These are things you can give to your children when you pass away. However unlike a cash lump sum, assets don’t have a fixed value to them. Every year, month and sometimes even weeks the overall value can change of the asset. Some assets are appreciating while other will only depreciate. This stirs up the conversation as to how should you plan for an asset succession.
The passing over of holder
Assets are owned by someone, be it a corporation or an individual. The owner is accounted for as the holder of the asset. They are the person or entity that holds the legal rights to that asset. The asset is therefore tied to that person’s life financially. When you pass way, the holder changes. The transition from you to the new holder is where you need to plan carefully so that the obligations are met properly. For example, the asset may need to be processed at the time of passing away or swapping hands so that a true value of it can be assessed. This is not just for the financial records but to make sure that the conditions that were stated in your will have been met and you’re not inheriting a damaged asset. It’s just to keep everything above board.
Limiting the tax liability
If you have saved all your life to then suddenly have the taxman take things away from your children, you have a right to be very upset. It’s a bizarre thing but inheritance tax of an asset is quite normal in the legal process. That’s why you should speak to specialists that know all about asset succession such as Philips Trust. They have helped many people over their 100 year history, to make sure their children get the most amount of what they have saved. Asset succession is one of their key areas where they give expert advice on what to do for various outcomes. They offer you the ability to lessen the tax you need to pay by keeping the interests of the beneficiaries of the utmost importance.
An asset that could be worth $1 million on year, could be worth $500,000 the next year depending on the economy. So keep up to date with true value of your assets as this plays a huge role in your final legal well. It’s not just the asset that you’re passing on but the inherent wealth creation factor of that asset too.
Saving up for your will is going to be a long and arduous affair but in the end, it’s for your children and friends. Take good care of your assets so their value can continue to be consistently growing higher.