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High net-worth individuals are no strangers to financial success and security. However, failing to establish a trust could leave them severely exposed, Estate Planning Attorney Robert Brumfield advised this week.
For more information please visit https://www.brumfieldlawgroup.com
The founder of Law Offices of Robert H. Brumfield, P.C., in Bakersfield, CA, laid out the adverse effects of such individuals failing to preserve their wealth and legacy for their families.
"The repercussions of not incorporating a trust into an estate planning strategy include the possibility that asset distribution becomes public during probate, potentially compromising the privacy that high net worth individuals and their families desire," he stated.
Another disadvantage of not having a trust is that the probate process can become more expensive and time-consuming, eroding a significant portion of the estate's value through legal fees, court costs, and other expenses.
He also highlighted the potential for increased tax liabilities, such as higher estate and inheritance taxes, due to inadequate trust planning, which can further reduce the wealth intended for heirs and beneficiaries.
Families of high net-worth individuals could face challenges in ensuring assets are distributed to heirs as intended. ‘’Lacking a trust or any estate planning could also be a hotbed of potential family disputes over who should get what and how much," Brumfield noted.
Brumfield continued, "If family disputes risk causing additional stress and division, creditors can further complicate the situation. Assets distributed through probate may be susceptible to creditor claims, which could reduce the inheritance left for beneficiaries."
He strongly encouraged high net-worth individuals to seek guidance from an estate planning attorney. Establishing a trust can streamline the wealth transfer process, ensuring assets are managed according to the individual's wishes.
‘’Trusts, as a cornerstone of an estate planning strategy, offer numerous benefits. They allow for private asset distribution, protecting financial details from public scrutiny, and enable individuals to specify how assets should be managed and distributed, ensuring their intentions are fulfilled’’, Brumfield concluded.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Robert H Brumfield
Email: Send Email
Organization: Law Offices of Robert H. Brumfield, P.C.
Address: 1810 Westwind Drive, Suite 100, Bakersfield, CA 93301
Phone: 661-464-7770
Website: https://www.brumfieldlawgroup.com
Release ID: 89142181
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