Fatherhood Without Leaving Financial Burdens
Embracing fatherhood is undeniably one of life’s most rewarding experiences. Yet, amidst the hustle and bustle of providing for our children’s immediate needs and ensuring their present happiness, it’s all too easy to overlook crucial decisions that impact their future security and financial well-being.
To ensure that your assets are protected and your retirement contributions are in order, you should ask yourself some basic questions.
Have you taken out life insurance to protect your beneficiaries in the event of an emergency or fatality? Have you planned the terms of your inheritance?
These are just a few issues that you should reflect on and act upon while you still have time.
It is important to apply a certain order and criteria to generate wealth for your offspring. In Argentina, there is an inheritance tax levied on the free transfer of assets. If a child beneficiary inherits up to $100,000 in assets, intended for a single family residence, they are exempt from the tax. However, if they inherit more than $100,000, they must pay the provincial treasury a sum of money. For example, if a child beneficiary inherits $1.5 million in assets, they must pay $68,906 in tax.
If you do not plan your estate, you may end up paying more than necessary. Probate is a judicial process, and planning it saves time and money.
Protection of family inheritance
In terms of taxation, inheritances are taxed on the inheritance, made up of real estate, registrable movable property, and the equivalent of 10% of the two previous items for non-registrable movable property and other assets. The sum of the immovable, movable, and non-registrable assets makes up the affidavit of assets that the intervening magistrate takes as the taxable base to calculate the costs of the succession process.
Three alternatives dispense, in principle, with the judicial process of succession: donation contracts with or without reservation of lifetime usufruct, donation with annuity charge, and transfers of assets linked to other rights in rem and contracts, transfer of shares and shares for consideration or free of charge, assignment of rights and hereditary shares over different types of assets or trusts, among others.
If you are the owner of a company with other partners, it is essential to take out corporate insurance. This type of insurance enables the surviving partners to buy that part of the partnership using the company funds or their resources. Thus, if one partner perishes, the partners designated as beneficiaries will collect the sum insured, sufficient to purchase the decedent’s share.