How to Transfer Your Asset While You Alive In Estate Planning

Estate planning is the process of accumulating and disposing of wealth before death of individual of group of owner known as estate owner including married couple. It aims is to maximize the wealth of the estate owner. The most important goal of estate planning is to make sure that the greatest amount of the estate passes to the estate owner's intended beneficiaries while paying the least amount of taxes. The purpose of transfer your asset to the estate is to ensure that your estate will only pay for its share of taxes and provide a larger wealth for your estate beneficiaries. In this article, we will discuss type of properties that you may transfer while you alive.
The main objective of transferring your properties while you alive is to make sure that your estate will not take the burden of paying too much upon your death.

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1. Sale
Includes the transfer of ownership for "consideration" (the exchange of values by parties to the contract). The sale must take place between persons dealing at arm's length (independent of one other)

2. Gifts
Includes transferring ownership or part of to another person for no consideration.
You may have to pay tax for any gain of the property that you transfer your asset to your love one as gift, but you can avoid paying tax for that property future gain, it take some burden of tax away from your estate after you die.

3. Inter vivos trust
It is created while the grantor (you) of the trust is still living and the assets are placed in hands of a trustee
a) the opportunity to take advantage of income spitting.
b) The ability to continue to control assets that have been set aside for your children or other dependents
c) The ability to keep your affairs confidential since trusts have few reporting requirements
d) The ability to remove assets from your estate and therefore, from the calculation of probate fees



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