Estate planning involves determining how a person's assets will be preserved, managed and distributed after death. It also takes into account the management of a person's assets and financial obligations in the event of incapacitation. Another purpose of estate planning is to ensure that your assets pass to the appropriate beneficiaries. Estate planning is about protecting your loved ones, which means, in part, providing them with protection from the Internal Revenue Service (IRS).
It is essential for estate planning to transfer assets to heirs with a view to creating as little tax burden as possible for them. Estate Planning Means Getting Your Legal, Financial, and Medical Matters in Order. It can involve decisions as important as who will care for you during your lifetime and what will happen after you die. Estate planning involves setting up a plan that sets out who will eventually receive your assets.
It also lets you know how you want your affairs handled in case you can't handle them on your own for some reason. It is a complicated process and, without a doubt, it can be overwhelming. There are many components to estate planning, and while there's a common misconception that it's just about your finances, the truth is that there's a lot more. A properly prepared estate plan will state your wishes exactly, in the most advantageous way possible, so you can trust that there will be no questions, misunderstandings or misconceptions about what you want.
Estate planning devices may include wills, revocable or irrevocable trusts, powers of attorney, living wills, donations, creation of family limited partnerships, or simply the creation of joint leases on bank accounts, stock accounts or real estate. While there are a variety of reasons why people decide to meet with an estate planning lawyer and create an estate plan, here are five of the most valuable reasons. An estate plan that includes both a living trust and a will is not necessarily more expensive initially than an estate plan that only includes a will, but it is more likely to avoid charges and costs later, considering that a funded trust can prevent court involvement in the event of disability and death. So, whether you need to review an existing will or create a comprehensive estate plan from scratch, it's best to contact an estate planning attorney to get started with your estate plan today.
For example, if a valid beneficiary is not named, the assets will have to go through probate and will be distributed along with the rest of your estate. Perhaps the biggest benefit is that if you don't prepare properly for what should happen in the future while you're healthy and able, you won't have a say in how your estate is managed or what your loved ones will receive when that time comes. Estate taxes are taxes paid to the federal government (and sometimes also paid to state governments) on real and personal property inherited from a deceased person. You don't need to be rich, elderly, or even have a specific amount in your bank account to justify the need for a valid Estate Plan.
It's important to understand that trying to do your own estate planning to save money can now cost your family later and can have consequences you didn't intend to. A comprehensive estate plan can resolve many legal issues that may arise as you age and your health situation changes. Although there are many parts to a complete estate plan, addressing them one at a time is the best way to come up with a plan that is conclusive, comprehensive, comprehensive, and that protects everyone in your life you love. Each estate planning attorney brings a sophisticated level of understanding to these complex and technical areas of law.