Estate Planning is Essential For Protecting Inheritance Assets
Estate planning is a fundamental part of life planning and requires executing legal documents to ensure beneficiaries receive intended inheritance gifts in the event of death.
While few people jump for joy at the idea of planning their estate, it is important to at least implement basic elements to protect loved ones.
Minimum estate planning should consist of a last will and testament, durable power of attorney, and healthcare proxy.
Individuals whose estates are valued higher than $100,000 might consider transferring inheritance assets into a trust.
Executing a last will is a simple process that does not require a lot of time.
A will provides details of how assets should be distributed.
Upon death, the will is submitted through probate court and becomes a matter of public record.
Probate can be prolonged when individuals die intestate (without a will) and assets are distributed according to state probate laws.
Executing a will is particularly important for individuals with minor children.
Wills include guardianship provisions to protect children if one or both parents die.
If no will exists, the children's fate will be determined by a probate judge.
Estate planning lawyers can help establish a final will or trust.
Depending on the complexity of your estate, the cost to execute a legal will can range from less than $100 to more than $1000.
Trusts require additional paperwork and time.
Assets placed in trusts are usually exempt from inheritance taxes.
In order to draft a will, you will need to write out a list of personal property, real estate holdings, financial investments, life insurance policies, and business interests.
Next, you need to determine who will receive each asset in the event of death.
While it can be uncomfortable to discuss plans with heirs, it is important to talk about death planning so everyone is aware of your wishes.
Open communication can prevent misunderstandings and family disputes once you are no longer around.
Granting power of attorney rights is an important decision that should not be taken lightly.
POA grants authority to a personal representative to act on your behalf in managing finances.
The designated agent should be trustworthy and willing to accept the duties if you are incapable of making decisions for yourself.
Healthcare proxies document your wishes for medical care that you do or do not want should you become critically ill and unable to communicate.
A healthcare proxy allows you to place in writing life-saving directives including resuscitation, nutrition and life support.
Many people falsely believe estate planning is only for the wealthy.
Nothing could be further from the truth.
Regardless of assets and net worth, it is always a smart decision to execute a legal last will, power of attorney and healthcare proxy.
Dying without these documents can place a heavy burden on your loved ones.
While few people jump for joy at the idea of planning their estate, it is important to at least implement basic elements to protect loved ones.
Minimum estate planning should consist of a last will and testament, durable power of attorney, and healthcare proxy.
Individuals whose estates are valued higher than $100,000 might consider transferring inheritance assets into a trust.
Executing a last will is a simple process that does not require a lot of time.
A will provides details of how assets should be distributed.
Upon death, the will is submitted through probate court and becomes a matter of public record.
Probate can be prolonged when individuals die intestate (without a will) and assets are distributed according to state probate laws.
Executing a will is particularly important for individuals with minor children.
Wills include guardianship provisions to protect children if one or both parents die.
If no will exists, the children's fate will be determined by a probate judge.
Estate planning lawyers can help establish a final will or trust.
Depending on the complexity of your estate, the cost to execute a legal will can range from less than $100 to more than $1000.
Trusts require additional paperwork and time.
Assets placed in trusts are usually exempt from inheritance taxes.
In order to draft a will, you will need to write out a list of personal property, real estate holdings, financial investments, life insurance policies, and business interests.
Next, you need to determine who will receive each asset in the event of death.
While it can be uncomfortable to discuss plans with heirs, it is important to talk about death planning so everyone is aware of your wishes.
Open communication can prevent misunderstandings and family disputes once you are no longer around.
Granting power of attorney rights is an important decision that should not be taken lightly.
POA grants authority to a personal representative to act on your behalf in managing finances.
The designated agent should be trustworthy and willing to accept the duties if you are incapable of making decisions for yourself.
Healthcare proxies document your wishes for medical care that you do or do not want should you become critically ill and unable to communicate.
A healthcare proxy allows you to place in writing life-saving directives including resuscitation, nutrition and life support.
Many people falsely believe estate planning is only for the wealthy.
Nothing could be further from the truth.
Regardless of assets and net worth, it is always a smart decision to execute a legal last will, power of attorney and healthcare proxy.
Dying without these documents can place a heavy burden on your loved ones.
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