Most people know they need an estate plan in place for when they eventually pass away. This can be easier said than done. A lot of people have no idea where to start with their estate plans, which is why it is crucial to set some clear, attainable goals.
For starters, Minnesota has one of the highest state income tax rates in the country. When you develop your estate plan, you should try to make it in such a way to where your beneficiaries pay as little tax as possible. This requires a unique approach and some legal assistance. Here are some other common goals you may want to keep in mind as you craft your last will and testament.
Provide for loved ones
This is the clearest, most common goal people have when making an estate plan. Ultimately, you want to make sure your most valuable assets go to the people you care about most in the world. Without an estate plan, the state gives everything to your spouse and children. There may be other people you want to account for, so a clear estate plan primarily helps with this endeavor.
Provide for charities and other organizations you care about
For people with large estates, they may not want everything going to people. They may want to set aside some money to go to a charity or church. Without explicitly stating this in the estate plan, your loved ones will not know to send money to these organizations.
Maintain your privacy
For prominent community figures, their estate plans can become part of the public record. For these people, it is prudent to try to keep the contents of their will and trust private. At the end of the day, your loved ones are the only people who need to know what you wanted at the end of your life.