When people think of estate planning, they generally think of legal wills. Estate planning is not just a will, although it does involve writing one. Rather, it’s a series of legal steps that involves allowing your beneficiaries to avoid probate, and minimize the taxes incurred. For you to write a living will, you will nominate trusted associates who will assume power of attorney and executor – should you be incapacitated or die. Estate planning also allows you more direct control over how your assets will be treated when you pass on. If one does not wish to pass down debt obligations, like prestige auto finance (to their beneficiaries), they can take the help of financial advisors and include it in their estate planning.
Estate planning is not merely drafting a will. It includes minimizing fees and potential taxes, besides setting up contingency plans to ensure health care treatment. Good estate planning coordinates your investments, your life insurance, your business, your home, your employee benefits and other things, in case you become disabled or face death. Estate planning attorneys specialize in the area of trusts, wills and estate planning.
So, see to it that your estate planning attorney that offers legal advice, has been certified by state bar organizations. In fact, they have continuing requirements for education. Speaking with an estate planning attorney helps in avoiding financial & emotional nightmares that have been known to occur with improper estate planning. The right time to prepare an estate plan is when you have legal capacity and you are competent enough to make a contract.
Importance of Estate Planning
An important part of any estate plan, is the inclusion of a living will. A living will is not usually considered a legally binding document. However, it is given consideration if you are ever incapacitated and left unable to carry out your legal rights – or make decisions. While the living will itself may not carry much weight, you can nominate someone to assume your enduring power of attorney (EPA). If you are unable to exercise the living will as a legally binding decision, your enduring power of attorney can only be challenged by a court.
The will itself is the most important part of any estate plan. If you should die without writing a will, the specific laws of your state will determine how your assets will be divided following probate. Debts may also be transferred over to someone else, by default; you can go to www.RemoveDebtFast.org/Methods/Debt-Free to learn ways to keep this from happening. Additionally, with no prior planning of where the assets should go (in the event of your death), your estate is likely to be taxed the most maximum amount possible. Where no will is present, the spouse is likely to keep one third of the value of the estate, with the remainder to be distributed (evenly) among the children.
An estate plan enables you to stipulate, for instance, that if your children receive an inheritance, the property is given to them, personally – and not to the child’s spouse. Should your child ever divorce, then the value of any inheritance received would not have to be shared in any divorce settlement, as it would not be a shared asset of that marriage.
One of the more important aspects of estate planning is the protection it can provide your assets. Typically, after a person passes away, their family sells the assets that were left to them and divide the proceeds among themselves. If, however, you have a company or significant property holdings, you may wish to prevent the breakup of any of these assets, judging them to have more value as a whole, compared with their value after being broken up.
Estate planning allows very specific instructions for how such assets should be treated, if you wish to prevent this asset division from happening. For example, you can specify in your will that you require that your business be run by a family trust whose members and membership requirements you specify. It is common for people to wish to leave behind some legacy when they’ve gone, and the establishment of a family trust, to ensure your assets are managed properly by a family member, is a good way of ensuring it.
Estate planning law firms offer personal advice and skillful tax management, that is designed for each client. They advise on minimizing estate and gift taxes. They implement sophisticated planning techniques to assist their clients in achieving business, personal and tax-related goals. The estate planning services entail wills and trusts, transfers of wealth, power of attorney, gift giving, planning for special prerequisites, health care documents – and more.
Wills and trusts help in preparing the client for the future. The planning attorney helps in protecting the client’s assets and in transferring it to the next generation, by preparing wills and trusts. In case of events such as death, your loved ones need to be taken care of, by maintaining said assets for their benefit. It can also be stipulated to seek counsel from finance experts and use federal laws to clean up debt obligations to companies like afni debt collectors , so that they won’t be passed down to loved ones. All these are effectively done with wills and trusts. Trusts protect your property, as well as, assets and taxes – while a will is a legal document specifying to whom it will be inherited, upon your death. All these can only be done properly with the help of a proper estate planning attorney.