In the Virgin Islands, a proper estate plan protects assets during the probate process. The estate owner initiates their rights and makes choices about their assets and wealth in the plans. Asset protection is achieved by lowering the value of the estate and avoiding probate whenever possible. A consultant explains strategies to help estate owners keep their assets safer.
Moving Assets Out of the Estate
The owner removes assets from their estate by transferring the properties or wealth into a trust. The most effective option is an irrevocable trust. The estate owner continues to maintain control over the assets and uses them however they choose. However, the assets aren’t listed as part of the estate. A new owner is identified after the current owner’s death. Since the assets aren’t part of the estate, inheritance taxes don’t apply.
Why Should You Transfer Ownership Now?
The estate owner should transfer ownership of certain assets to the beneficiary if he or she is diagnosed with a progressive mental condition. Owners who have Alzheimer’s Disease can transfer ownership as long as they are lucid. Any sign of mental incapacity prevents the transfer. An early transfer also removes the asset from the estate.
Setting Up Trust Funds
Trust funds are a more convenient option for giving money to children. The value of the trust funds is determined by the estate owner. He or she contributes to the trust fund throughout their life. Provisions are added to prevent new guardians from accessing the funds if the child is underage when their parent dies.
The Benefits of Health Care Directives
A healthcare directive prevents extraordinary measures such as life support. It also identifies an individual who manages the estate owner’s medical care. In the event that the estate owner becomes incapacitated, the health care proxy makes all decisions for them.
In the Virgin Islands, estate planning practices provide asset protection and early transfers of ownership. The strategies remove certain assets from the estate through trusts and trust funds. The practices lower the amount of time the estate remains in probate and stops creditors from seizing assets. Estate owners who need more information about the plans contact David Johnson Cane Bay now.