Estate planning is the process of organizing the transfer of assets before death in order to preserve the maximum amount of wealth for the intended beneficiaries. It involves designating who will receive your assets in the event of death or disability, and minimizing estate taxes, gift taxes, and other tax impacts. Estate planning is important as it removes the burden of legal heirs having to bear the taxes of transferring assets if the inheritance had not been planned. Most estate plans are established with the help of an experienced probate attorney.
Estate planning includes bequest of assets to heirs and settlement of estate taxes. Assets that could constitute a person's estate include houses, cars, stocks, works of art, life insurance, pensions and debts. Newer methods of estate planning include innovative and creative platforms such as Trust & Will. Many financial advisors urge clients to have trusts, especially those who live in states where probate fees are especially high or if the client owns a home or real estate.
The estate planning law overlaps to some extent with the law on elders, which also includes other provisions, such as long-term care. A comprehensive estate plan can resolve many legal issues that may arise as you age and your health situation changes. The first step in estate planning is conducting a thorough review of your estate assets. If you have doubts about the process, it might be worthwhile to consult a probate lawyer and possibly a tax advisor.
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. Donations reduce the financial size of the estate, as they are excluded from taxable wealth, reducing the wealth tax bill. An experienced estate planning attorney can explain all the options available to you to meet your goals and meet the needs of your loved ones. Estate planning is an important process for anyone who wants to ensure that their assets are managed according to their wishes after they pass away or become incapacitated. Estate planning is important as it removes the burden of legal heirs having to bear the taxes of transferring assets if the inheritance had not been planned.