You might think of estate planning as something for only the wealthiest Americans. The truth is, though, estate planning is an important process for anyone who has accumulated assets, not just the ultra-wealthy. It’s a common assumption that estate planning only regards estate taxes, but in reality, this isn’t the case.
Think of estate planning as legacy planning. It’s about building and protecting your legacy for your loved ones after you pass away.
If you have a qualified retirement account, like a traditional IRA or 401(k), you probably already know they can provide an effective way to save while you reap the benefits of tax-deferred growth. That means you don’t have to worry about paying taxes while your money is in the account.