The days and weeks following the death of a loved one can be a difficult time, especially when it comes to settling the estate of the deceased. Proper planning in advance, however, can help make estate settlement a smoother process for all concerned.The cornerstone of any estate plan is a will. Nearly everyone knows this, of course, but they often put off drafting a will because they believe it will be too expensive or will make them feel uncomfortable.
For affluent individuals, irrevocable trusts have long been an effective vehicle for passing on wealth to future generations. Since assets placed in an irrevocable trust aren’t considered part of a taxable estate (although they are subject to gift tax when transferred into the trust), their value doesn’t count against the federal death tax exclusion. All of the growth on the assets after the gift will not be subject to both gift and estate tax.
For many individuals, philanthropy is one of the more gratifying parts of estate planning. Adding in a multigenerational component can make it even more meaningful and compelling. Just as every family is unique, so is their philanthropic approach, and there is no single way to involve a family in philanthropy.What is multigenerational philanthropy?In some respects, multigenerational philanthropy is defined by what it is not.