Real Estate Planning 101: What You Need to Know
Investing in a proper real estate plan can be a simple process if you are smart with your assets. A successful business can help themselves if they hire an expert at real estate planning and development. Companies hire asset management firms to guide their investments but often do not properly plan their real estate decisions that often involve significant assets. In this article, we will go over the fundamentals of real estate planning.
Real Estate and Planning - What is it?
When looking to complete a strategic plan for a business, it can be a struggle. All businesses share challenge. A reasonable real estate plan can be a vital asset for all businesses and their owners.. Many people share the common belief that an estate plan controls your money, including your entire real estate portfolio—but this is not true! Rather, there is a large difference between financial planning, estate planning, and REAL ESTATE planning.
Real estate is property made up of land and the buildings on it, as well as the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water, and any additional mineral deposits.” – Investopedia
It is essential to keep the pure definition of real estate in mind, as this helps to define it in all legal matters.
Now let’s dive into FINANCIAL PLANNING.
Financial Plans & What You Need to Know
Financial Planning Definition:
A financial plan is a comprehensive statement of an individual's long-term objectives for security and well-being and a detailed savings and investing strategy for achieving those objectives. A financial plan may be created independently or with the help of a certified financial planner.” – Investopida.com
Financial plans are important for both business owners and individuals who want to protect their earnings. Unlike estate plans, they only control your investments and savings. Real estate planning can relate to commercial or personal real estate planning because most often the largest asset a person owns is real estate. If your primary concern is to create financial freedom for your family as your succession plan, a large part of that will also include real estate planning.
Real Estate and Estate Planning Attorney
It can be troublesome and difficult to create an overall estate plan. All in all, it makes individuals think about the worst case scenarios and what will occur after their death. It can be uncomfortable and challenging for those with little to no experience in finance. Overall, it is fundamental to assure your assets are managed carefully and that your family will receive exactly what you want them too. (Unclear if we are talking about estate planning or real estate planning….we need to clarify this as it is confusing me).
Therefore, we recommend hiring a real estate planning attorney for overall real estate planning. Hiring one is overall beneficial and will ensure your hard-earned money goes in the right place. Additionally, trust-and-estate lawyers can help you navigate through complicated situations (such as having more than one trust, and multiple heirs).
Estate Planning Tips
- Maintain a neat administration of assets while alive
- Manage your real estate assets while living
- Review estate assets including property
- Consider assets if involved in multiple states/countries
- Review small business assets
- Name your children’s legal guardian
- Ensure your loved ones receive assets
- Try to limit conflicts and confusion when planning
- Minimize legal estate taxes and legal expenses
- Assess your wealth preservation strategy
All these tips should give you a well-balanced idea of a good estate plan. Remember, the worst thing for any business owner to do is to have no estate plan.
When searching for a reliable, trustworthy attorney, it is important to have a solid idea of what you want your plan to look like. This will help your lawyer and you to form a clearer plan that is.